No. of Recommendations: 3
“Abel spoke with Goldman Sachs , Alphabet’s banker, on Sunday to work out the terms of Berkshire’s participation in the company’s stock offerings and later connected with Alphabet CEO Sundar Pichai and finalized the deal Monday, people familiar with the matter said. Berkshire is getting those shares at a steep discount to where they trade.”
It looks like BRK paid $351 for the new $10B in shares, it was trading at $385 on Friday, so they got about an 8% discount to market. Not sure that is what I would consider "steep discount", but what do I know...
Thanks. Looks like Greg is comfortable if he can get an 8% discount on the entry price for his public market deals, and he's willing to participate on a non-preferred basis, where WEB frequently used to get another 10% of the upside through preferreds, warrants, etc. I agree 8% is not a"steep" discount for the lead investor in a round, but it's certainly not a bad deal. I'd take it lol. I suspect he (Greg) will have a chance to do more of these deals: 8% discount, MFN, maybe a valuation cap. I wonder if they used a SAFE...
PS I kind of like it that it isn't easy to discover the terms on the internet lol. Very old-school. Onward!
abromber
