by Kat October 23, 2003
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(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 All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.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 All of the shares of stock are withdrawn and the company no longer has to publish its financial data with the SEC.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 02, 2010
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Ads that have adapted to adblockers, and became "real" stories about saving 15 percent or more on car insurance. Also the 265th episode of South Park.
I just want to watch the news, but then I'm looking at an ad. I try to click the x, but it turns out its a link for the top ten worst celebrity plastic surgeries ever. So as I'm looking through it I get another ad leading to a slideshow on money making hacks even though it isn't even a hack, leading me to another ad, but I just want to know about the presidential campaign, but when I try to go back it turns out its a link to some sponsored content about Geico. And then the cycle repeats.
by aQUAT1C November 21, 2015
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An experienced or senior facebooker who guides or explains how to do stuff on facebook that the rest of us can't figure out on our own.
"I couldn't figure out how to post those three pix in a row on my wall, so I had to ask my Facebook Sponsor. He got me straightened out, but he totally lost me when he started facebook preaching."
by Ando Indigo October 01, 2009
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by DaTraveler November 25, 2013
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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
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Tag Sponsor is a girl on Instagram, who is trying to look decent but is actually a high end prostitute and has been caught falling for a deal made by a guy to pay for sex. She usually accepts 20k for a weekend and says she will do extra stuff like golden shower or corpophilia (disgusting) for extra. Some women have even agreed to go with a 13 year old for extra (terrible). The screen shots of the conversation have been uploaded online to Tag Sponsors website
That girls a Tag Sponsor. I couldn't believe it
by Frank467 May 05, 2017
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