Roku, the streaming content device maker, is reportedly in the works with underwriters to take the company public. The Saratoga-based company, created in 2008 by former Netflix vice-president Anthony Wood, has already proved to be very successful. Roku generated $190 million in revenue last year alone and has raised over $150 million in private capital. However, many believe the time is right for an IPO for two reasons: the need to stay competitive moving forward and the success of recent consumer electronic IPOs.
The “Internet of Everything:” Qualcomm to Acquire CSR
As the growth of the smartphone market continues to reach an asymptotic peak, large chip makers have turned their attention to other sectors, like the automotive and household industries. Qualcomm, a US wireless technology company and one of the largest chip makers in the world, is pioneering this shift by buying the British chip maker CSR for $2.5 billion in a deal announced on October 15th. In doing so, Qualcomm’s motivation is to refocus on the growing demand to connect every conceivable tool to the Internet—including everyday devices like refrigerators, washing machines, and cars—as part of a concept known as the “Internet of Everything.”
Theme in Big Banks’ Latest Earnings: Legal Costs
In the past few years, banks have combined to pay more than $5 billion in fines related to manipulation of the London interbank offered rate, or Libor, and other benchmark interest rates. In 2013, regulators in the United States, Britain, Germany, Switzerland, and Hong Kong started investigations into the currency markets. Dozens of foreign exchange traders, from some of the largest and most prestigious banks, including Barclays, UBS, and JPMorgan Chase, have been placed on leave over questions regarding collusion to manipulate benchmark currency rates.
Investor Concerns at PIMCO
Trouble has been brewing at Pacific Investment Management Company, LLC (PIMCO) for some time, and investors have taken notice. PIMCO is one of the largest asset managers in the world, with over $1.9 trillion in assets under management. While the PIMCO Total Return Bond Fund is the largest bond fund in the world, the firm also offers asset management services across real assets, private equity, and global equities.
Facebook Aims to Retaliate Against DLA Piper and Other Firms
On Monday, October 20th Facebook filed charges against DLA Piper along with several other firms and attorneys that had represented Paul Ceglia in an earlier suit opposing Facebook. The October 20 lawsuit, filed in the New York Supreme Court, is based largely on facts pertaining to a 2010 action in which Ceglia sued Facebook.
Fun and Games or Serious Business? Dave & Buster’s Goes Public
Dave & Buster’s Entertainment, an arcade and restaurant chain, made its public market debut on October 9th after being privately owned for 8 years. The IPO was priced at $16 a share, on the lower end of the expected range of $16 to $18. The shares began trading the following day on NASDAQ under the ticker symbol “PLAY.”
European Commission Fines Four Major Banks for Cartel Behavior
On October 21, 2014, the European Commission fined JPMorgan, UBS, and Credit Suisse over 94 million euros (about $120 million) for participation in two distinct cartels involving the Swiss franc. In both of these cases, the banks agreed to settle with the Commission.
SolarCity Corp. Issues Bonds To Raise Money For More Clean Energy
SolarCity, whose stocks are traded on NASDAQ, operates in the area of installation and deployment of energy efficiency products and services. It is the biggest firm in the US operating in residential solar systems solutions alongside Sungevity and Vivint Solar.
A Rare Occurrence in Hedge Fund Takeover
Unlimited bread sticks and disappointing shares helped contribute to the demise of the entire board of Darden Restaurants, Inc. on October 10, 2014. As Steven Davidoff Solomon, a professor at the University of California, Berkeley, School of Law simply put it, “We have an epic fail, the entire board replaced, which almost never, never happens.”
Private Equity Firms Alter Capital Structure Granting Access to Individual Investors
Traditionally, private equity investments such as buy-outs have been investment vehicles open to a restricted asset class—usually large pension funds, insurance firms, and university endowments. Recently, however, private equity fundraising platforms are looking to high-net-worth individual investors to supplement capital funds previously almost exclusively comprised of institutional investors.