Being privately held helps a ton. Gabe is his own boss. Once a company’s public they’re beholden to the investors, and investors want big short term returns so they can dump their stock and move onto the next one.
I think it is a little more complicated than that. You go to public markets to raise cash. Sometimes you can get the cash you want, sometimes not. The issue is when you are incentivized to make the stock price go up at all costs. If you don’t need the cash, there is no point to having a higher stock price - lower is somewhat better.
Now, if you are a CEO, and you are paid in stock options, you are going to do whatever you can to maximize the stock price. Even if it is bad for thebling term health of the company. I don’t think the public markets care either way.
Being privately held helps a ton. Gabe is his own boss. Once a company’s public they’re beholden to the investors, and investors want big short term returns so they can dump their stock and move onto the next one.
Maybe that shouldn’t be possible.
I truly fear the day Gabe passes on. Do we know who would own Valve if Gabe were to pass on today?
I think it is a little more complicated than that. You go to public markets to raise cash. Sometimes you can get the cash you want, sometimes not. The issue is when you are incentivized to make the stock price go up at all costs. If you don’t need the cash, there is no point to having a higher stock price - lower is somewhat better.
Now, if you are a CEO, and you are paid in stock options, you are going to do whatever you can to maximize the stock price. Even if it is bad for thebling term health of the company. I don’t think the public markets care either way.