Comment by gmerc
2 years ago
You are mistaking what the CEO and the VCs want with what a long term stable company would want.
The incentives don’t work that way. The CEO gets his bonus and ability to sell shares if he pleases VCs and VCs are looking for bagholders for the company. So the CEO creates a revenue narrative to sell to institutional investors so they take an increasingly mediocre asset from the VCs at a premium.
The pattern is all around, exactly the same as Reddit for example.
As a game designer - there is zero built in incentives for the C level of a publicly listed company to do what’s good for the company long term. It’s much better to get rich quick and cash out.
It’s just that the desperation is now now sky high and narratives for the next earnings call need to be generated quickly
This comment makes no sense considering Unity is a publicly traded company.
They are heavily invested by VCs who need to find bagholders to buy their shares. That’s the point.
They've been public for three years. Any VC that funded them had plenty of time to exit. It's like you're just regurgitating words you heard on wallstreetbets or something.
Why? IMHO it makes more sense for a public company.