Lightstreet taking on $ZEN board and Hellman & Friedman should be fun

Image upload

Watch out for this one if you are a SaaS investor, this board is corrupt.
Abstract Investor's avatar
Really interesting. I wonder where the Founder-CEO fits under all of this. Whether he's with the rest of the board or wishes to keep running the business. I think the operators ought to have the most important POV in this context.

Zendesk is best in class software for what they do, and there's a strong argument to let them just keep growing and compounding. Valuations have been punished enough in SaaS as it is and that 77.50 price doesn't compensate shareholders with a sufficient premium at 5x NTM sales.
Modern Growth Investing's avatar
@abstract i agree bad premium, i think the founder is kinda helpless probably and being over powered by the board, this why dual class structure is much more defensible for long term view

Author

Related