Valuations in Vision
#valuation
When big companies try to acquire startups, they often miss the mark. Peter Thiel notes that founders only sell when they've run out of vision, making the acquisition overpriced. Conversely, founders with clear plans won't sell, indicating the offer was too low. Thiel recalls Mark Zuckerberg's decisive rejection of Yahoo's $1 billion offer for Facebook in 2006. Zuckerberg's certainty about Facebook's future made Yahoo's offer seem laughable. In a world that views the future as unpredictable, Thiel argues, businesses with definite plans are consistently undervalued.