HP commits $10 billion more to stock repurchases

Topics: Contract, Corporation, Dilution, Marketing

The move by the world's largest personal computer maker boosts its buyback budget to almost $15 billion and is intended to offset dilution from employee stock purchases. Hewlett-Packard Co., the world's largest maker of personal computers and printers, said Monday that its board had approved an additional $10 billion for share repurchases. The company will repurchase at least $3 billion in shares in the fourth quarter ending in October, interim Chief Executive Cathie Lesjak said in a statement. The Palo Alto company is in a bidding war with Dell Inc. for data storage provider 3Par Inc. of Fremont. HP last…

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Do VCs Really Prefer Convertable Notes Over Straight Equity?

Topics: Dilution, Equity, Investor, Risk, Venture Capital

Convertible notes -- debt instruments that can be converted into stock at the option of the holder or the issuer -- are a popular choice among VCs when they participate in early funding. On this point, Y-combinator cofounder Paul Grahm tweeted : "Convertible notes have won. Every investment so far in this YC batch (and there have been a lot) has been done on a convertible note." But have they really won? This question was asked on Q&A site Quora yesterday: Why would an early-stage investor specifically NOT prefer a convertible note structure to straight equity (e.g. a priced/valued preferred…

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Stocks dip as investors enter week cautiously

Topics: Corporation, Dilution, Exports, Investor, Management

NEW YORK - Stocks edged lower Monday as investors took a cautious approach to trading before the government's latest report on the jobs market. The Dow Jones industrial average fell 22 points in morning trading. Broader indexes also edged lower. Several stocks were moving on the latest flurry of corporate news. Genzyme Corp. rose after rejecting Sanofi-Aventis SA's $18.5 billion takeover offer, while Hewlett-Packard Co. rose after saying it plans to buy back stock. Cogent Inc. jumped after agreeing to be acquired by 3M Co. Introducing the LA Times Star Walk app for iPhone. Tour the famous Hollywood Walk of…

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Your Perception of Business Growth Is Wrong

Topics: Dilution, Entrepreneur, Management, Risk

Much of the perceived wisdom about business growth is mythology, says Edward D. Hess, professor of business administration and Batten-Executive-In-Residence at the University of Virginia's Darden Graduate School of Business. Smart Growth: Building an Enduring Business by Managing the Risks of Growth (Columbia Business School Publishing, 2010). He spoke about his latest research with Smart Answers columnist Karen E. Klein. Edited excerpts of their conversation follow. Edward D. Hess: What most business people think about growth, like "grow or die" or "growth is always good," is not supported by research. Most business executives accept without question that bigger is always…

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Some Thoughts On The Seed Fund Phenomenon

Topics: Cash Flow, Copyright, Dilution, Investor, Management

I think that Paul Kedrosky got the discussion started with this post. Chris Dixon wrote an interesting response. And yesterday John Boyd wrote a thoughtful post on the topic. John's comment made me think about a blog post I wrote three and a half years ago called "Web 2.0 Is A Gift, Not A Threat, To VCs." If you haven't read that post, I would urge you to go read it. I blog because it helps me think through a lot of issues we face in our business and this post was really useful to us over the past several…

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