After leading a botched attempt to take WeWork public, Adam Neumann succumbed to pressure from the boardroom to step down from his position as chief executive of the fabled unicorn. His resignation came at the wake of the company’s announcement to delay its much-anticipated IPO amid concerns about the company’s governance and its burgeoning losses. […]
Net Neutrality Legal Battle Shifts to States
In the latest installment of the ongoing net neutrality legal battle, the D.C. Circuit Court of Appeals upheld the Federal Communications Commission’s 2017 move to repeal Obama-era internet regulations. Current FCC Chairman Ajit Pai called the ruling a “victory for consumers, broadband deployment, and the free and open internet.” However, this decision may prove to […]
London Transport Authorities Serve Uber a Disappointing Two-Month Permit
On September 24, Uber obtained a two-month permit to continue operating in London—a permit that falls far short of the five-year permit it sought. This signifies the second time that Transport for London (TfL), the city’s licensing authority, has rebuffed the ride-hailing firm. Further signaling distrust of the ride-sharing app, TfL imposed conditions on the […]
The Startup Bubble Deflation: A Story of Disproportionate Valuations
The recent deflation of the startup bubble may be explained by Wall Street investors’ growing reluctance to buy into huge startup valuations. Recent IPO debut flops of hot companies with high valuations (Uber, Lyft and Peloton) have other companies like WeWork rethinking going public anytime soon. Peloton alone managed to lose $900 million of private […]
Silicon Valley bankers and lawyers push for an IPO alternative
Bankers and lawyers have recently recommended that companies use direct listings as an alternative to initial public offerings (IPOs). A direct listing allows a company’s shareholders to sell their existing stock on the stock exchange without having to go through the underwriting process involved in an IPO. However, a direct listing cannot be used as […]
Warren and Zuckerberg Clash Over Breaking up Big Tech
Senator Elizabeth Warren is leading polls for the 2020 presidential election and has taken a strong position against tech giants like Facebook. In March 2019, Warren introduced a proposal in favor of breaking up leading technology companies, including Facebook, Amazon, and Google. She noted in a tweet that big technology companies have “engaged in illegal […]
Peloton’s IPO Falls Flat: Implications for the Future IPO Market
On September 26, 2019, Peloton Interactive Inc. (“Peloton”) launched its IPO – priced at $29/share and ended at $25.76/share (down 11%)*. As a result, Peloton’s IPO became the second-worst performing IPO of 2019 and the third-worst debut offering since the financial crisis. Peloton offers fitness equipment integrated with a workout-streaming subscription service that can be […]
Vox Media Acquires New York Magazine
Vox Media announced its acquisition of New York magazine along with its digital assets in an all-stock transaction in September 2019. A press release by New York Magazine revealed that Jim Bankoff, Vox Media CEO and chairman, will continue to lead all aspects of Vox Media. Pamela Wasserstein, chief executive of New York Media, will […]
Op-Ed: Taxing Wall Street Traders
High-frequency traders have turned Wall Street into a casino. They spend millions of dollars on super high-speed internet and develop complex computer algorithms so they can quickly find out what you are willing to pay for a stock, buy it for slightly less, and then sell it back to you at a profit, taking money […]
Rising Litigation Costs Pressure Bayer and J&J to Settle Xarelto Lawsuits
In late March, Bayer and Johnson & Johnson settled more than 25,000 lawsuits surrounding Xarelto, a blood thinner medication jointly developed by both companies. This $750 million settlement was in response to thousands of allegations that Xarelto causes uncontrollable bleeding leading to severe bodily injury and death. In addition to winning all six cases that […]