- Jan 27, 2008
- 3,806
- 16,254
Looks like smoke and mirrors, an application of the dark arts, sleight of hand -, whatever you want to call it - welcome to the world of corporate accountancyNot a financial expert by any stretch of the imagination, however the 10% stake doesn’t have to be worth the price a buyer is willing to pay for it. On paper, that 10% stake is worth 270 but if Sheik Mansoor wanted 500 and Silver Lake were willing to pay that amount due to a good future ROI, then they would be paying that price.
It isn’t a sound investment on paper either, were your stake would have to double in value just for you to break even, and grow even more to make a profit.
I hope someone with a little more financial expertise can explain how this deal would make sense to us.