When he ate that cheese before bed, I knew a spoonbomb would be likely if we snuggled in the middle of the night.
by Botany Babe September 23, 2016
Get the Spoonbomb mug.(FINANCE) an initial public offering of stock in a company by a private equity fund that already owns it.
ILLUSTRATION
Suppose we have a company, HCA, that currently a publicly traded corporation. Now, some people with a lot of money arrange to borrow even more money, buy ALL the stock in HCA, and then turn it into a private corporation. All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.
In theory, the new ownership can totally restructure the management; invest in new assets; divest old assets; retrain staff; or otherwise refurbish HCA so it does its job better and more cheaply. After doing this, it sells the new HCA to the public for much more than it paid for it, and everyone comes out a winner.
In practice, PE fund raids HCA to the tune of $2.5 billion and saddles it with the gigantic finance costs of its own LBO. Investors think they're buying a set percentage of HCA when they buy shares, but they're really just extending the process of vacuuming cash from the pockets of investors.
ILLUSTRATION
Suppose we have a company, HCA, that currently a publicly traded corporation. Now, some people with a lot of money arrange to borrow even more money, buy ALL the stock in HCA, and then turn it into a private corporation. All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.
In theory, the new ownership can totally restructure the management; invest in new assets; divest old assets; retrain staff; or otherwise refurbish HCA so it does its job better and more cheaply. After doing this, it sells the new HCA to the public for much more than it paid for it, and everyone comes out a winner.
In practice, PE fund raids HCA to the tune of $2.5 billion and saddles it with the gigantic finance costs of its own LBO. Investors think they're buying a set percentage of HCA when they buy shares, but they're really just extending the process of vacuuming cash from the pockets of investors.
MIKE: So I hear that KKR and Bain Capital are selling HCA back to the public. A new IPO, huh?
MARGARET: Avoid it. Ordinary IPO's by companies going public for the first time are doing much better.
MIKE: But that's crazy! It's a sponsored IPO! By KKR and Bain Capital! It's got to be good! They'll still own most of HCA afterward, so they'll do what it takes to make sure the price stays high.
MARGARET: No, they don't care what the share price does so long as they get your money out of you. In the meantime, they've looted the company in the most inefficient way possible: using an LBO financed with junk bonds.
MIKE: Ouch, I guess my head is glad I talked to you about it but my heart is a greasy stain in the pavement.
MARGARET: Avoid it. Ordinary IPO's by companies going public for the first time are doing much better.
MIKE: But that's crazy! It's a sponsored IPO! By KKR and Bain Capital! It's got to be good! They'll still own most of HCA afterward, so they'll do what it takes to make sure the price stays high.
MARGARET: No, they don't care what the share price does so long as they get your money out of you. In the meantime, they've looted the company in the most inefficient way possible: using an LBO financed with junk bonds.
MIKE: Ouch, I guess my head is glad I talked to you about it but my heart is a greasy stain in the pavement.
by Sorry, the good guys lost September 2, 2010
Get the sponsored IPO mug.Related Words
by spockluver8 June 25, 2009
Get the spocksome mug.Spoonmeat is a luxury food item, usually available from frozen food supermarkets in the United Kingdom such as the popular 'Coldland'. It is traditionally served with an accompaniment of 'Carbonated Dipping Jam' and is popular on special occasions such as 54th birthday party's.
"My, this Spoonmeat is delicious! And tell me; what is in this Carbonated Dipping Jam?"
"It's 8p a pot"
"It's 8p a pot"
by B. Hive December 14, 2012
Get the Spoonmeat mug.Snonym for advertisement or click-bait. Also called "promoted content", to trick the people who *finally* figured out sponsored content also means "bullshit follows".
It's usually some picture completely out of context for the advert, just there to draw your attention to the fraudlent, errr, sponsored content. These spurious pictures used to bounce around in their frames, before the Geneva Convention outlawed those mechanisms (and HTML flash tags) as crimes against humanity.
Underneath each spurious photo will be a partial headline designed to create a curiosity or "intellectual" itch that needs to scratched. For instance, "Doctors recommend that all parents of three headed babies do this..". Sometimes these lies, err, partial headlines are keyed to you location, in order to astonish you that something "important" is happening nearby. For instance "If you live near Ulan Bator, your mortgage could be paid...". Sponsored content usually appears in groups of four to six turds, or frames, at the end of an article. Nowadays, a real story may lurk in the fecal matter, to try to fool you into clicking on one of the nearby stools.
It's usually some picture completely out of context for the advert, just there to draw your attention to the fraudlent, errr, sponsored content. These spurious pictures used to bounce around in their frames, before the Geneva Convention outlawed those mechanisms (and HTML flash tags) as crimes against humanity.
Underneath each spurious photo will be a partial headline designed to create a curiosity or "intellectual" itch that needs to scratched. For instance, "Doctors recommend that all parents of three headed babies do this..". Sometimes these lies, err, partial headlines are keyed to you location, in order to astonish you that something "important" is happening nearby. For instance "If you live near Ulan Bator, your mortgage could be paid...". Sponsored content usually appears in groups of four to six turds, or frames, at the end of an article. Nowadays, a real story may lurk in the fecal matter, to try to fool you into clicking on one of the nearby stools.
1) Never click on sponsored content; it can summon the devil, or something even more evil from Taboola!
2) "Sponsored content" is related to "useful" as "Jussie Smollett" is to "truthful".
2) "Sponsored content" is related to "useful" as "Jussie Smollett" is to "truthful".
by therealmookmerkin April 11, 2019
Get the sponsored content mug.Evan: Have you heard, the Office Xmas Party's on a Thursday this year. Best take Friday off huh?
Sarah: No way; company sponsored hangover ;).
Sarah: No way; company sponsored hangover ;).
by JB42 August 21, 2010
Get the Company Sponsored Hangover mug.person who gives a large amount of cash, or other entity in return for eternal gratitude or other service
The girl was yawning in class even though a big gum company was the talk sponsorer, they eventually stopped sponsorship
by monster energy3322 March 20, 2009
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