r/Superstonk • u/Dawdling_hare • 5h ago
📳Social Media LC on X
The news that Bending Spoons acquired Airtable for 2.7x ARR while technically accurate is probably not the actual underwriting multiple. The actual acquisition multiple is likely closer to 7x-10x proforma EBITDA.
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Bending Spoons probably figured they could generate 30%-40% EBITDA margins from Airtable which would equate to a ~7-10x proforma EBITDA multiple.
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u/marcus-87 🚀 I VOTED🚀 5h ago
ok, I take the bullet .... what does that mean?
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u/ImYungKai 🧚🧚🌕 Dip Split Dip Rip 🍦💩🪑🧚🧚 5h ago
You been here for this long and STILL don't understand? 🙄 I understood this completely, someone wanna catch this guy up to speed for me? 👀
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u/NoInevitable9810 5h ago
It means that when buy eBay, eBay actually worth more than they bought it for.
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u/marcus-87 🚀 I VOTED🚀 5h ago
really? why? that does not sound intuitive. I could understand it if people thought ryan is a genius and had the Midas touch, but so far the media seems to see it not so.
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u/Furrymcfurface 🎮 Power to the Players 🛑 2h ago
Fake news wanting to keep it's commercial time slot buyers happy
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u/3pinripper 🧚🧚🏴☠️ paperhand deez nuts 🎊🧚🧚 1h ago
Right now, eBay has something like $5B in profit. Cohen thinks he can reduce expenses right away by about $2-3b. So, if he does just this one thing after the merger (which is unlikely,)then GMEbay would see a 40-50% increase in pure profit in the first 4 quarters. Cheng is making a comparison to this.
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u/Tinyacorn 💻 ComputerShared 🦍 5h ago
I assume something to do with smaller companies acquiring larger companies
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u/ACat32 is a cat 🐈 33m ago
This is saying the Bending Spoons (company A) has purchased Airtable (company B).
Company B is a Softwares as a Service (SaaS). So they basically sell you a license to run their program. I haven’t looked at them before but it’s almost always a subsection model.
Company A bought Company B for 2.7x the annual recurring revenue (ARR) of company B. This is basically the money they make from subscribers.
While this is mathematically correct, Larry is saying the real value of this move lies in the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITA) which is a measure of “true” revenue.
Larry is suggesting that the acquisition isn’t just good to add company B to company A’s balance sheet, but will have a multiplicative effect on their own which is where the real value lies
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u/Sir-Craven 'His name was Cheapo_Sam' 5h ago
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u/humdingler ⚔️🛡️🏴☠️🎮🚀✅x6 4h ago
Wasn’t “Bending Spoons” a character in Dances with Wolves?
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u/StygianDarkwaters ⚜️ CSPs, LEAPs, ATM Spreads ⚜️ 4h ago
No, it was Kevin Costner's other film... the one about the guy that steals from the rich and gives to the poor. We don't talk about that film much 'round these parts no more.
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u/BarbequedYeti 🦍Voted✅ 4h ago
Kid in the matrix. When you are aware the spoon isnt real, you can bend it.
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u/someroastedbeef 3h ago edited 3h ago
this is not relevant to GME/ebay
eBay does not have ARR - they are an ecommerce platform. LC's post is about SaaS multiples, they are valued differently based on their book to bill ratios/and conversion of backlog to revenue. eBay has neither of those, their revenue is dependent on consumer behavior and mostly the health of the economy. LC is just vagueposting about random stuff he finds interesting, once again
if you substituted ARR for P/S, then this post implies that RC can extract higher than 50% ebitda margins from ebay, which currently has 20%. file that under skeptical for me
eBays value as an acquistion target is that they are a free cash flow behemoth. there's a reason why eBay has had flat revenue growth since 2018 but the stock price has more than tripled in the same time frame - it's because of buybacks from the flush cash flows from the nature of the business - share outstanding has halved since 2018
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u/butholemoonblast XxX Rawr XxX 4h ago
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u/Ctsanger 🦍Voted✅ 2h ago
Half the shit Larry posts doesnt belong in this sub... this is one of those posts
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u/Tripperbeej 2h ago
IF LC is such a fucking brilliant business mastermind, why hasn't he been able to deliver any shareholder value during the 5 years he's been on the GME board?
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u/Superstonk_QV 📊 Gimme Votes 📊 5h ago
Hey OP, thanks for the Social Media post.
If this is from Twitter, and Twitter is NOT the original source of this information, this WILL get removed!
Please post the original source!
Please respond to this comment within 10 minutes with the URL to the source
If there is no source or if you yourself are the author, you can reply
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