altimeter capital letter altimeter capital letter

It's interesting that now today you say we're in the neighborhood of a tradable bottom. Conclusion A Leaner, Faster, More Successful Meta. ISDA is a registered trademark of the International Swaps and Derivatives Association, Inc. If multiples expand then you have even more upside. And I appreciate you being with me on the very first "Overtime" show. GERSTNER: Right Scott so that you know I started off by saying you know we've been beaten up this year like everybody else because I was covering shorts as we approach the five-year average. United Urgently Needs a Course Correction: United's stockholders, customers, and employees deserve better Board governance, better Board leadership, and better Board performance. It's my job to ask you about it knowing you're not happy about it and you answered the question. Welcome to "Overtime.". Altimeter Capital Chair and CEO Brad Gerstner, in an open letter to the company, said Meta has too many employees and is moving too slowly to retain the confidence of investors. They're building their own ad platform, right, that can deal with this. I have spent over 20 years investing behind some of the worlds great founders who are helping to invent the technologies that move the world forward. We know Meta has more reach, more relevance, and more incredible opportunities for growth than almost any platform on the planet. Paul A. Reeder A securities lawyer, Brad Gerstner graduated from HBS in 2000 and joined General Catalyst. Everybody knows we've been in this company for a long time. The full text of the stockholder letter to the United Board follows: March 8, 2016. Altimeter Capital's Brad Gerstner Issues Open Letter to Meta (NASDAQ: META) and Mark Zuckerberg. Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at nearly $40 billion and . As you know, we are long-term shareholders. And what is going to be the resolution to the situation in the Ukraine? Advertisement Gerstner, through Altimeter, manages over $15.0 billion worth of investments across private equity and venture capital. To put that in perspective, excluding your large metaverse investment, Meta is investing more in capex than Apple, Tesla, Twitter, Snap, and Uber combined! On Oct. 11, Meta announced a new high-end VR headset, the Quest Pro. Focusing the Metaverse: the Next Generation of Communication and Collaboration. When exactly did you determine that the Board was so inadequate as to need four new directors, all at once, and without an annual meeting or a stockholder vote? "We think the recommendations outlined above will lead to a leaner, more productive, and more focused company a company that regains its confidence and momentum," Gerstner wrote. Is it all about rates at this point, especially when you're talking about the kinds of vulnerable stocks that we've really had front and center, those being tech? Menlo Park, CA 94025 (650) 549-9145 (Name, address, including zip code, and telephone number, including area code, of agent for service) Copies: . 9/29/2022 1:05 AM. Can it possibly be worth 100 billion? "Jitesh Ubrani: Tweet From March 3, 2023. I have deep respect and admiration for founders that continue to grind, inspire, and invent long after the financial motivation is gone. Meta stock is down over 61% in 2022. In the back half, you don't have those same comp issues that you have caused by COVID. Altimeter said such huge investments "in an unknown future is super-sized and terrifying, even by Silicon Valley standards". Moreover, Meta has industry leading capabilities in key future technologies like artificial intelligence and immersive 3d that will help drive new products and future growth. HONG KONG (AP) Southeast Asia's largest ride-hailing company, Grab Holdings, said Tuesday that it plans to merge with U.S.-based Altimeter Growth Capital in a deal that would value it at . Today, the cost of capital has radically changed, and so has Metas growth rate. Conclusion A Leaner, Faster, More Successful Meta. Time to Get Fit an Open Letter from Altimeter to Mark Zuckerberg (and the Meta Board of Directors) | by Brad Gerstner @altcap | Medium 500 Apologies, but something went wrong on our end.. And frankly, they weren't a very good hedge because bonds haven't moved all that much but gross stocks are down 60, 70, as you mentioned, down over 80%. I remember people asking that question about Amazon. This is a hard game. By Altimeter Capital $750M Venture Capital in Feb, 2021 VROOM E-Commerce +2 Total funding $1.2B in 10 rounds from 15 investors By Altimeter Capital $50M Series E in Sep, 2016 Wingz Networking +3 Total funding $13.7M in 4 rounds from 36 investors By Altimeter Capital $11M Series B in Jan, 2016 Rates are going up and we have a war. Altimeter Capital owns about 2.46 million Meta shares. We dont have any demands. Revenue. Moreover, I am a strong supporter of founder-led companies especially when they have your successful track record of seeing the future. I've got some people including a guy coming up in a little while Mike Wilson who suggested at this point bonds may be a better deal than stocks. You do, you do great work, excited for the new show and let's stay after it. The bottom line is where I wanted to start this whole interview with is you called it. Ray Dalio's: Bridgewater Associates. By any normal company or start up standard, $5 B per year would seem like an extraordinary amount. Southeast Asian superapp Grab is likely to set a world record by selling itself into a special purpose acquisition company, or SPAC, run by U.S. tech venture capital investors Altimeter Capital . As such, we think Meta company should cap its metaverse investments to no more than $5B per year with more discrete targets and measures of success, as opposed to todays much more ambitious and open-ended strategy. And we are confident that your long-term investments in AI and the next generation of communications will continue to drive us all forward. He said a 20% cut in employee spending would take Meta back to the levels of staffing it had last year and argued that the company can't spend as it used to since the cost of capital and interest rates have risen recently. See the Top Performing Hedge-Funds > Brad Gerstner . GERSTNER: No, I didn't leave it out. Following careful consideration, we have firmly concluded that meaningful change to United's existing Board of Directors is urgently required in order to reverse long-standing poor Board governance and the resulting many years of substantial and inexcusable Company underperformance relative to United's competitors. An estimated $100B+ investment in an unknown future is super-sized and terrifying, even by Silicon Valley standards. Congrats on the new show. Louis Bacon's: Moore Capital Management. Meta changed its company name from Facebook. Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology. I would take it a step further and argue that these incredible companies would run even better and more efficiently without the layers and lethargy that comes with this extreme rate of employee expansion. The last 10 years have been a unique time in tech and for Meta. I'm going to own these companies, there are a handful of select companies that are free cashflow positive that are going to be worth more in the future. Get your daily dose of business updates on WhatsApp. So we've taken up our exposure, we've consolidated behind our five or six best ideas, we don't run leverage and so the bet for our LPs, I'm the largest LP in the fund. We think this is a 3X in three years even if software multiples remain at these levels near the five-year average. Learn the pros and cons of crowdfunding. Subject: Meaningful Board Change Required Search ISDA ISDA fosters safe and efficient derivatives markets to facilitate effective risk . The changes for the Quest 2 begin Sunday, March 5. It said Grab is expected to raise between. FTX founder Sam Bankman-Fried was not only a tireless fundraiser from venture capital firms including Paradigm and Sequoia Capital, but also quietly made investments in those same funds, according to two people familiar with the matter. It's good to see you again. It did not specify which of Alitmeter's SPACs Grab was in talks with. Altimeter Capital Management, ISDA 2021 SBS Top-Up Protocol - Adherence. The conventional wisdom press and investor is that the core business hit a wall last fall. Their last reported 13F filing for Q4 2022 included $3,652,571,000 in managed 13F securities and a top 10 holdings concentration of 99.95%. So, it doesn't surprise me at all that buyers are on the sidelines and that sellers and short sellers are having a field day with stocks. The move comes amid a decline in Meta's VR shipments and pressure from activist shareholders to improve the financial picture of its metaverse division. This letter constitutes, as between each other Adhering Party and us, an Adherence Letter as referred to in the Protocol. Sign up for free newsletters and get more CNBC delivered to your inbox. The social media company had in June cut plans to hire engineers by at least 30%, with Zuckerberg warning employees to brace for an economic downturn. You would simply do R&D quietly and investors would focus on the core business and the breakthroughs in AI. Meta can get its mojo back, says Brad Gerstner, but it will have to take some hard decisions first. Altimeter Capital Management is a hedge fund with 17 clients and discretionary assets under management (AUM) of $17,950,309,162 (Form ADV from 2022-05-27). Barney Harford, former CEO of Orbitz Worldwide; former board member of Orbitz Worldwide and eLong; The vast majority of the capex has been an essential and high-returning investment in data centers, Nvidia GPUs and other AI resources to solidify the companys position as one of worlds leaders in AI. As such, we would encourage the company to move aggressively and cut at least 20% of employee-related expenses by January 1, 2023. Sign Up. Following is the unofficial transcript of a CNBC exclusive interview with Altimeter Capital Founder & CEO Brad Gerstner on CNBC's "Closing Bell: Overtime" (M-F, 4PM-5PM ET) today, Monday, March 14th for the premiere. So these are different order of magnitude bets. In the last 18 months, Meta stock is down 55% (compared to an average of 19% for its big-tech peers). Ultimately, Gerstner said, Meta has too many people and is spending too much on capital expenditures. So we're in the neighborhood of a tradable bottom. As I look at it, the market is now pricing in at least seven rate hikes. In an open letter to CEO Mark Zuckerberg on Monday, shareholder Altimeter Capital Management urged Meta Platforms Inc., the parent company of Facebook, to streamline by eliminating positions and capital expenditures. Before we we move, what do I do with Facebook? In preparation for its first-ever mass tournament, Chronos will feature a fantasy-theme RPG with the potential to earn prizes and a chance to win based on the classes of playable . And so, for our LPs, the bet is simple. Of course, a company that connects nearly three billion users on phone and text must be investing in the next generation of communication. Over the last three years, Meta has also dramatically increased its capital expenses. 15 BRAD GERSTNER: Hey, Scott, thanks for having me. And so we're getting hurt like everybody else. Even excluding its large metaverse investment, Meta has gone from $15B in annual capex in 2018, 2019, and 2020 to $30B in annual capex in 2022. My bet is we're gonna have less this year. effective risk management for all users of derivative products. There is no doubt that doubling annual FCF will improve share price. A newly launched P2E adventure game, Chronos: Dawn of Tie, has introduced a series of brand-new PvP elimination tournaments.Last month, the whimsical battle game organized its beta stage featuring selected players. As always, happy to connect with you and your team. https://www.cnbc.com/video/2022/03/14/we-could-go-lower-before-we-go-higher-in-stocks-says-altimeter-capitalas-ceo-brad-gerstner.html. The letter is the latest sign that Meta investors are starting to express reservations about the company's recent performance. This is a business it's trading at 12 times free cash flow, X the meta investment and 18 times including. Our best guess is that maintenance capex for Meta is less than $10B annually.