I think the mindset that describes people who say something like this may echo what others might think. Particularly the saying "pigs get fat, hogs get slaughtered" comes to mind [1].
Also the idea that value doesn't change and that there is no downside risk to not sellig for 1.1b cash (there is since there is always a down side to any decision to some degree).
I know of business people on a smaller scale who had passed up a almost perfect deal and held out and lost the entire deal because some event happened to change the circumstances. (Health of an individual, market, neighborhood, events (like 911, wars etc.) whatever. Things can and do change.
Take your firm that you sold for example. It is made up of key individuals. At a certain point you decided to sell. What if you had held out? Could have gotten more perhaps but also could have had something happen to a few key individuals that might make the firm less attractive. (Not thinking security consulting going out of favor though obviously).
While non of the examples that I am giving apply to tumblr I'm just pointing out that people tend to not look very closely at what they stand to lose vs. what they are holding out for. At least from what I have seen over time.
I don't know if 1.1 is the right number or not, just trying to give another angle to this.
[1] Greediness maybe that's the word I am looking for here.
Comments
"I don't understand this mentality"
I think the mindset that describes people who say something like this may echo what others might think. Particularly the saying "pigs get fat, hogs get slaughtered" comes to mind [1].
Also the idea that value doesn't change and that there is no downside risk to not sellig for 1.1b cash (there is since there is always a down side to any decision to some degree).
I know of business people on a smaller scale who had passed up a almost perfect deal and held out and lost the entire deal because some event happened to change the circumstances. (Health of an individual, market, neighborhood, events (like 911, wars etc.) whatever. Things can and do change.
Take your firm that you sold for example. It is made up of key individuals. At a certain point you decided to sell. What if you had held out? Could have gotten more perhaps but also could have had something happen to a few key individuals that might make the firm less attractive. (Not thinking security consulting going out of favor though obviously).
While non of the examples that I am giving apply to tumblr I'm just pointing out that people tend to not look very closely at what they stand to lose vs. what they are holding out for. At least from what I have seen over time.
I don't know if 1.1 is the right number or not, just trying to give another angle to this.
[1] Greediness maybe that's the word I am looking for here.