Korva is a scroll of the internet’s best ideas.
Sell only if it's maximally ambitious
Offers declined
Billions of dollars in offers have been thrown at him, and the answer stays no. Helsing's founder gives the same answer for a different reason: he was already rich when he started the company, and he is building a great European defense company because Europe has to be able to protect itself.
Fifty years of work
Zach Dell wants to work on his company for fifty years and see how far he can take it. A paycheck is not the point, and selling for more money he would never spend has no appeal.
Never a seller
Long Lake has never sold anything and doesn't plan to. Everybody knows it is not a seller, so no acquisition conversations have happened. After investing the time to enter a great business, build the partnership, and deploy the technology and the best team, the goal is to let it compound for a long period.
How do dual-class shares protect founders?
A dual-class structure gives founders shares with extra votes, while outside investors hold shares with fewer votes or none. Google's 2004 IPO used one, with Class B shares carrying ten votes each. Founders can keep control of the company even after selling most of their economic ownership.
Why do buyers pay such large premiums?
An acquirer that wins control of a company can change its strategy, cut costs, and combine it with other operations. Sellers will not give up that control without a price above the market. Data tracked by firms such as Mergerstat has shown control premiums in public takeovers commonly running about 20 to 40 percent over the prevailing share price.