Since this makes absolutely no business sense, you can bet it's being done to cash out investors and shareholders, before the clock runs out on the party.
They can raise all the private funding they need, but they can't cash out that way.
Actually the fonders have been cashing out I'm pretty sure. Employees get antsy if there's no way to cash out. Not to mention venture investors, for whom this is (assuming the price stays up and they sell before the stock can start nosing its way down) a huge payday they can bank and look good to their LPs, so they can raise the next fund.
Comments
Since this makes absolutely no business sense, you can bet it's being done to cash out investors and shareholders, before the clock runs out on the party.
They can raise all the private funding they need, but they can't cash out that way.
Actually the fonders have been cashing out I'm pretty sure. Employees get antsy if there's no way to cash out. Not to mention venture investors, for whom this is (assuming the price stays up and they sell before the stock can start nosing its way down) a huge payday they can bank and look good to their LPs, so they can raise the next fund.