The prime example is what happened with facebook and whats app, out of the blue coming up with a valuation of $16 billion.
Anything along that kind of technology, people think they can get 2x, 3x of what they thought.
They received new funding back in may.
Any idea why they did the ipo now?
It may have less to do with those vc's meeting their money back now.
It is more about the opportunity resented as the business gets bigger.
We are seeing roku and the apple tv device, google crone cast, a lot of these streaming devices, so the market is getting bigger quickly.
Our understanding is, in the case of roku, something they think about is, if we could be public, we can beat up your play in this area.
Apple has a lot of businesses they focused on, the same for google and amazon.
If we would go public, we would be a standalone.
We have been hearing recently that maybe later this spring we could see a new version of apple tv.
We do not know what kind of form it will be, but it is possible the timing of roku could be motivated by apple on one hand and apple on the other.
People keep on talking about what amazon may do with streaming video.
Even if you do not have money today, you will need it for tomorrow potentially.
One thing we see with these devices are lots of iterations.
One of these players looking to sign up as many content players as possible.
When you look at what is available on apple tv compared to six months ago there is a big change there.
Everyone is hungry to offer better service.
In the case of roku, we will be able to tell the story of a company that has technology that it is licensing to others out there that want to stay competitive to apple tv.
I am thinking of the smart tv manufacturers.
They talk about selling their operating system to tv manufacturers and that becomes a secondary revenue source for them.
But you are right, there is a lot of change happening, devices are getting better, and that leads to a potential need for money.
Is the impetus for going public the same as 10 years ago?
Is it for cashing out for shareholders?
Without a doubt, they want to raise money for the company -- but is this different from 10 years ago?
I am thinking about candy crash.
They did not need the money to go public.
If you do, it is usually first into the marketplace gets the largest market share.
Anybody that wants to come in along this chain cannot do so successfully.
David, i want to get back to your point of whatsapp, to the degree that it's a valuation changes the game for others that want to go public.
How can you build comps off of this?
Wouldn't we see the market reprice any company with anything close to what they have ? stocks are clearly at an all-time high in america, but nothing touching a $19 billion valuation out of the clear blue sky.
That is the point, how you build comps.
In order to do that, you have to drink the kool-aid.
All investors will not be like mark zuckerberg.
No, and the smaller companies will hold back and say, you obviously want us for our intellectual property, or our service, but overall, we do not think $2 billion, $6 billion is not enough.
Is that a bubble in essence?
The markets will continue to take it because the ipo's are not at that level yet.
We will have to see a company like roku -- and i am not saying anything negative about them -- but people envision them as the little box next to the tv.
What is that differentiation with other products coming out, and will they be any things peschel?
-- anything special?
Here in new york city, we see what happened with whatsapp and we say that has to be a bubble.
What are people saying out there?
Is it a case of the true believers saying it is truly worth $16 billion, or is there perhaps some skepticism along the west coast?
People are starting by looking at what facebook is doing.
There is an embellishment that part of their future business could be something that they did not have and that is why they had to do it.
When you factor in the ipo and you factor in at what price you sell, this becomes a part of the same strategy.
If your company is successful enough for you can get the bankers to sell you, we could consider the ipo, that is a good place to be, especially considering if facebook or someone else comes knocking on your door, and you can find the right home for your business.
There are some smart strategies behind it, and that is why some of the companies considering going public and that being acquired.
I have a feeling we will
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