The Next Amazon? Don’t Bet On It

Groupon is a lot things: ambitious, audacious. Tomorrow, it will be a public company, too. But investors should be very wary about assuming Groupon is the next Amazon. Despite the many times the analogy has been drawn, including by Groupon’s management and investment bankers, nothing could be further from the truth. A Bloomberg article published […]

Analysts Say Carlyle Will Have Difficult Time with Its Planned IPO

(Reuters) – The Carlyle Group filed on Tuesday for an initial public offering of its common units as it looks to join rivals Blackstone and KKR as listed private equity firms, but the filing comes amid deep uncertainty on global equity markets.

The U.S. IPO market has struggled as concerns about Europe’s debt crisis and a weak recovery in the United States have made markets volatile. A number of deals were withdrawn last month.

“If Carlyle files in this time frame, in basically a market meltdown, something doesn’t seem right,” said Scott Sweet, senior managing partner at IPO Boutique.

Given the market conditions and the poor performance of other listed private equity players like Blackstone Group and Apollo Global Management …

Between a Rock and a Hard Place: Mark Pincus Puts the Squeeze on His Investors

While Groupon’s Andrew Mason takes a drubbing, another CEO is apparently having a very good week. According to a document obtained by Bloomberg last week, the social games juggernaut Zynga has amended its stock structure to give its savvy founder and CEO Mark Pincus a stunning 70 times more voting power than people who buy the company’s shares in its eventual IPO.

Bloomberg says Zynga’s board has already approved the new structure, which also gives the company’s current shareholders and pre-IPO investors seven votes per share. (Usually, if a company is going to establish separate voting rights, it is via a dual-stock structure that gives superior shares 10 votes per share, while inferior votes have one vote for share.)

The company just needs the rest of its shareholders to agree to the new stock structure by tomorrow…

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LinkedIn: One Class of Stock Too Many

When LinkedIn filed its S-1 last week, one stated risk listed in its prospectus was the dual class structure of its common stock, which will have the effect of “concentrating voting control with those stockholders who held our stock prior to this offering.” No one has really blinked at that statement. They should have. When […]

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