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Raspberry Pi launches its IPO
(www.raspberrypi.com)
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this post was submitted on 11 Jun 2024
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There are a high proportion of far-left types on here. I could see them wanting something to be government-owned or something. But wanting a company to be privately-owned rather than publicly-owned seems odd to me.
And the "enshittification" comments seem odd too.
"Enshittification" isn't some sort of catch-all term for a company doing worse. Doctorow coined it to refer to a point where a company that had been losing money to grow a customer base ends the rapid-growth phase and starts monetizing that base.
That makes business sense for some companies with low marginal costs and high fixed costs, and especially where there is network effect, like social media companies.
But here, the company is profitable, and not unreasonably so. Like, they don't have a monetization phase that they need to transition to.
https://techcrunch.com/2024/06/11/raspberry-pi-is-now-a-public-company-as-its-shares-pops-after-ipo-pricing/?guccounter=1
We're mostly negative on publicly traded companies because their ceo is legally obligated to squeeze blood from a stone or they quite literally will get sued by the shareholders, plenty of examples out there. The exceptions are usually there because the previous owners wrote contracts, etc to help keep the company as it was prior but even then it only works for so long. Check out Ben and Jerry's and their whole debacle on the subject.
There are certain fiduciary obligations that CEOs hold to shareholders. But on the flip side, if someone opposes the transition of privately-owned companies to being publicly-owned, then their position is that only the wealthy, those who can outright own a company rather than only part of it, via shares, may own companies. That seems quite like a policy exceptionally loaded towards the wealthy. It would make capital much harder to get, so it would be harder for someone who wants to start a company to do so. Only very wealthy entities -- stuff like very wealthy families -- would be able to own companies of any significant size. They would have little competition for their capital, and would be able to demand extremely favorable terms for it. Less-wealthy people would be intrinsically disadvantaged by their inability to must outright buy companies. Less capital availability would tend to impact wages negatively.
It seems to me stupendously at odds with the sort of thing that I would expect someone on the left end of the spectrum to want.