Giant tech companies are going to go after “unbelievable acquisition opportunities, ” according to Goldman Sachs’ president, Gary Cohn.
In a recent Q&A with The Information’s Jessica Lessin, Cohn said that “anything under $10 billion” could become an acquisition target.
He said that when firms’ multiples are based on eyeballs or users, they can’t be acquired by those whose multiples are based on earnings because “it’s too dilutive.”
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“One of the tell-tale signs that we’re getting close to the bottom will be a big deal — $20, $30, $40 billion, ” Cohn told Lessin. “If a company can pull it off and their stock isn’t penalized, we’ll know the valuation multiple for the market.”
Read the full Q&A over at The Information