I hope Bono sold early...
U2's Bono to become the world's richest musician tomorrow - NME.com
- Thread starter trevgreg
- Start date
The friendliest place on the web for anyone that follows U2.
If you have answers, please help by responding to the unanswered posts.
If you have answers, please help by responding to the unanswered posts.
doctorwho
Rock n' Roll Doggie VIP PASS
We can all do that now.
However, an investment company (also called venture capitalists) invests in privately owned firms (often start-up companies, but it can be for any company looking to gain additional capital, or money). In exchange for those funds, the investor is issued stock. The stock has no initial meaning as the company is not yet trading on any market. Those stocks have only the value of a "promise".
At some point, the investors would like to see what happened with their investment. Are the stocks they were given worth anything?
If the product that the company makes never takes off, the investor loses their investment. Hence, the risk.
However, if a company has some success with their product, the company can either make an IPO (initial public offering) or be bought by another company. In either scenario, the stocks that people held are now worth something.
This is also true for employees. For example, if you worked at Facebook before Friday, you might have been given stock options. For s smaller start-up company, it is a perk: "work for us and we'll give you 10,000 options granted at $1/share". What does that mean? In an literal sense, this means that if you wanted to buy that stock, it would cost you $10,000. Wait - that doesn't sound like a perk! Where's the benefit? Well, you don't actually buy the stock - you just hold onto it.
Then the company has their IPO or is bought out by another company. If, for example, Google bought Facebook, they would have to buy your shares. If the agreed upon stock price was $38 per share, you just made $37 per share ($38 minus the $1 that the stock was granted to you). $37 times 10,000 equals $370,000! This is the pre-tax amount, but you can see that you just received a very handsome bonus.
A similar situation occurs with an IPO, but now you have to "trade" or sell your shares. Again, taxes and fees for selling would apply.
For an investment team, we aren't talking about 10,000 shares. They may have hundreds of thousands of shares. If they gave Facebook the equivalent of $10/share (for example) in exchange for 250,000 shares, they just spent $2.5M. But with the IPO price of $38/share, that $2.5M just turned into $9.5M. They made a profit (before taxes) of $7M.
Things change once the company is trading on the market. I have worked for companies that gave me options, but at the currently traded value. If the stock goes down, as it has in many cases, the options are essentially worthless. They only gain value if the stock price goes up. This is now the same as buying shares on the market.
Whew - that was a bit much. Hopefully, I offended no one with this explanation. The irony is that this is the "short" version.
cobl04
45:33
I'm astonished that anyone gives an actual fuck about this.
LuckyNumber7
Blue Crack Addict
No kidding about the 'hypocrite' parade.
I just told my roommate about this and her first reaction was "why does he want more money?"
Umm... no you're right he should just let his cash sit as a medium pile of millions of dollars when instead it can be billions of dollars by doing exactly what it was doing before. Just sitting there.
I just told my roommate about this and her first reaction was "why does he want more money?"
Umm... no you're right he should just let his cash sit as a medium pile of millions of dollars when instead it can be billions of dollars by doing exactly what it was doing before. Just sitting there.
Nick66
Rock n' Roll Doggie ALL ACCESS
That's pretty funny...you could pretty much say that about anything that goes on around here, from speculating whether Bono's hair to people (e.g, you) obsessively posting about whatever obscure indie band is popular at the moment over at one of the Random Music Threads.
This is a forum dedicated to following a fracking rock band for crying out loud. Get some perspective. It's all equally meaningless.
LemonMelon
More 5G Than Man
Funny you should say this. Shouldn't endless circular arguments that go nowhere and derail the forum at least relate to meaningful topics?
MrsSpringsteen
Blue Crack Addict
Not that anyone cares but I'm on the side of it all being equally meaningless. Nothing that anyone posts here will be on their tombstones-and if it is they really should have gotten out more.
And I really like the word "fracking"-that's a new one on me.
PS-Dear Bono, can I have some money. Thanks in advance.
And I really like the word "fracking"-that's a new one on me.
PS-Dear Bono, can I have some money. Thanks in advance.
Nick66
Rock n' Roll Doggie ALL ACCESS
Relax. It all makes sense once you realise that most of the topics related to rock bands aren't meaningful.
When you can do this, you'll stop worrying and achieve wisdom.
So say we all.
corianderstem
Blue Crack Distributor
I only give a fake fuck.
Nick66
Rock n' Roll Doggie ALL ACCESS
corianderstem
Blue Crack Distributor
Sir, I shall never tell.
The Panther
Refugee
Imagine if U2 were actually a working rock band, and put their energy into playing and recording new songs, instead of spending it on tax-schemes, superhero musicals, acting in films, buying properties in France, hobnobbing with Bill Gates and dodgy politicians, living in Malibu, investing in venture capital of Facebook, and modeling $1000 sunglasses.
Somehow, we've come a long way from "three chords and the truth".
Somehow, we've come a long way from "three chords and the truth".
BVS
Blue Crack Supplier
This just in... musicians CANNOT be real people.
They cannot have other interests.
They cannot invest.
They cannot have friends.
They have to work for us!!!
They cannot have other interests.
They cannot invest.
They cannot have friends.
They have to work for us!!!
The Panther said:
I do my own taxes, have numerous hobbies, work out regularly, hang out with friends, hold down a relationship, make investments in the stock market, and somehow still am able to keep down a full time job.
I must be superhuman.
Or just a normal human being.
One of the two.
LemonMelon
More 5G Than Man
Bono puts the "fat" in "fatcat."
kingofsorrow
Refugee
they used their vast wealth to purchase the 3 chords and the truth. they rent out the 3 chords to up and coming musicians who can't afford to purchase their own chords. the truth has been retired to the Smithsonian and is currently on display in "silly notions of the past" section.
LuckyNumber7
Blue Crack Addict
I think we've learned simply...
that people simply shouldn't try to get more money if they already have it!
that people simply shouldn't try to get more money if they already have it!
The Panther
Refugee
However, I don't care much about you, whereas U2 give me pleasure with their music.
LuckyNumber7
Blue Crack Addict
Somehow I don't think you understood his point.
The Panther
Refugee
I understood his point perfectly. I don't think you understood mine.
His argument is: people can do a main job well and still do plenty of other things at the same time.
My point is: I liked U2 better when they had integrity.
His argument is: people can do a main job well and still do plenty of other things at the same time.
My point is: I liked U2 better when they had integrity.
LemonMelon
More 5G Than Man
Why bring integrity into this? I thought your point was that U2 is spreading themselves too thinly these days.
LuckyNumber7
Blue Crack Addict
Money = no integrity?
If U2 had no integrity, they'd be producing tons of albums. U2 albums sell. End of story. They don't want to release a shit album. They're scared that people wont like their music. We know by now that they have tons of shelved material. If they had no integrity, they would be releasing everything and banking solely on the grounds that they are U2 and they can do that.
BVS
Blue Crack Supplier
The Panther said:
Oh, I would love to hear you explain this...
corianderstem
Blue Crack Distributor
Oh LAWWWWWWWWWWWWWWD.
corianderstem
Blue Crack Distributor
I, however, would not.
last unicorn
Blue Crack Addict
Oh, I have to get back to my old job where I worked almost around the clock and got paid almost nothing. At least I had IN - TE - GRI - TY.
What's money compared to integrity? You cannot buy integrity with money.
Shame on everybody for chosing money over integrity.
And shame on Bono for not being stupid about business.
What's money compared to integrity? You cannot buy integrity with money.
Shame on everybody for chosing money over integrity.
And shame on Bono for not being stupid about business.
Of course he does! Where do you think the lyrics from Moment of Surrender came from?
The Panther
Refugee
How much money U2 have is irrelevant to my feeling about them. They certainly were earning heaps of money in the late 80s and early 90s, when I liked them a lot more, and that doesn't register with me at all.
It's more about the way they present themselves nowadays that I find distasteful, and that I associate with lack of integrity. The band members seem to have developed a "hardened" attitude towards public perceptions of them as wealthy in recent years, almost to the point of their being flagrant about it. I do wonder if they've been studying at the school of Paul McGuinness for a little too long.
There's quite a difference between making heaps of money from (non-corporate, lest we forget, prior to 1997) concerts and record sales, and making heaps of money from Facebook venture capital.
I do think the U2 of 1988 would have looked at themselves today with scorn. Just my opinion. Of course, people change, but they don't always change for the better.
It's more about the way they present themselves nowadays that I find distasteful, and that I associate with lack of integrity. The band members seem to have developed a "hardened" attitude towards public perceptions of them as wealthy in recent years, almost to the point of their being flagrant about it. I do wonder if they've been studying at the school of Paul McGuinness for a little too long.
There's quite a difference between making heaps of money from (non-corporate, lest we forget, prior to 1997) concerts and record sales, and making heaps of money from Facebook venture capital.
I do think the U2 of 1988 would have looked at themselves today with scorn. Just my opinion. Of course, people change, but they don't always change for the better.
BVS
Blue Crack Supplier
So has their attitude really changed or the media to which you view their lives through?
So if their investments in 1989 made them heaps of money you would have found the band to be distasteful and JT and AB wouldn't have been albums made by a band of integrity?
you're right. i have no fucking clue what any of the things you mentioned in your original post have to do with integrity.
so yes... point? missed.
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