However, in a direct listing, a company doesn't have to pay any outside parties to do that work for them - because they don't create any new shares. This process can be a bit costly for companies, as they have to pay extra people to do that evaluation for them, but it also means that when new investors buy into the new shares, they get money right away. In a typical IPO, a company basically creates new shares of itself ahead of allowing its shares to be sold publicly, enlisting outside help from intermediaries, networks of banks and other companies to determine the correct value of those new shares. One key point to be aware of when thinking about Roblox going public is that unlike many other gaming companies that have gone public lately, Roblox has gone public through something called a "direct listing" rather than an "initial public offering." So why is Roblox so interesting to people with money, and what does that tell us about games as a whole? What's a "direct listing"? For that matter, what's an IPO? That's a lot of money, more than Fortnite maker Epic Games was worth last anyone checked ( $17.5 billion in August of last year), and a whole lot more than many other companies whose names you hear more often. That huge valuation comes thanks to Roblox the company (which makes Roblox the game) going public last week via direct listing, and impressing investors enough to reach a first-day valuation of $45 billion.
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