5 ms·
Very tangential question that hit me while reading the comments: Is the current scenario possible: company A owns 10% of company B, and company B owns 10% of co
by arithma 7y ago
Very tangential question that hit me while reading the comments:
Is the current scenario possible: company A owns 10% of company B, and company B owns 10% of company A.
Does that mean getting the valuation of both companies require solving algebra?
Or is this outright prevented by other methods, like the board of A owns most of A and 10% of B?
- mruts 7y agoThere’s no reason why such a structure shouldn’t exist. I believe this how a lot of Japanese conglomerates are structured: different companies structured around a central company bank with each company owning a piece of all the others.
- lloeki 7y agoNissan and Renault have this structure (43% and 15% respectively) https://en.m.wikipedia.org/wiki/Renault–Nissan–Mitsubishi_Alliance https://en.m.wikipedia.org/wiki/Renault–Nissan–Mitsubishi_Al...