This week marks the one-year anniversary of Facebook’s public offering, and the market is still feeling its impact. Here’s how.
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You’d need a crystal ball to know how healthy the IPO market will be in 2013. Still, industry watchers – looking at the 152 active IPOs in the pipeline, versus the 226 IPOs in the pipeline at this time last year — feel safe in making a few, cautious forecasts.
Not everyone buys Twitter’s foot-dragging act. PrivCo, a New York-based research firm that focuses on private companies, believes Twitter will file to go public in the fourth quarter of this year, largely because of Facebook’s botched public offering last year.
Today, the Wall Street Journal has taken jabs by journalists and industry observers for reporting yesterday that Facebook is “inching closer to an initial public offering that it hopes will value the company at more than $100 billion.” It’s news we already knew, as everyone has amply complained. Still, there was an interesting nugget in [...]
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 [...]
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…
Groupon is having a lousy August. In one of the nicer reports to be published about the daily deals company in recent weeks, Benchmark Co. analyst Fred Moran told Reuters that he considers the company’s oft-cited valuation of $25 billion “very high.” This morning Henry Blodget of Business Insider jumped into the fray, defending Groupon [...]
Earlier this afternoon, Scott Sweet, managing director of the research firm IPOboutique.com, told me that he’d already received more than 30 calls today. Tomorrow, he says, “it will be double that number – at least.” Sweet finds himself in great demand as observers contemplate the imminent IPO of LinkedIn, which raised its expected price range [...]
Earlier today, Business Insider’s Henry Blodget wrote a sensational piece titled, “ZipCar’s IPO Underwriters Just Screwed the Company to the Tune of $50 Million.” In it, Blodget pointed to ZipCar’s opening price of $30 – which is $12 more than the institutional clients of Goldman Sachs and JPMorgan (and other insiders) paid. He accused the banks of [...]
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 [...]