A flow of corporate spinoffs is providing some much-needed activity in U.S. equity capital markets, as companies look to slim down or unlock value in parts of their businesses. The prospective transactions are shaping up as a rare source of new share sales in the U.S. An extended stretch of market volatility is quashing companies’ appetite for initial public listings, leading to the longest drought in more than a decade.
News & Press
Airbnb Stock Has A Purpose and CEO Chesky Is Proving A Visionary. This Could Drive The Stock 50% Higher.
Feb 17, 2022
There is a reason why Warren Buffet and Charlie Munger have never bought a new issue (IPO). It’s because they are manufactured investments, orchestrated in such a way that the investor gets the worst deal possible. I concur. The very thought of a group of people who make the optimum amount of money by selling you an investment at the highest possible price just makes my stomach turn. Wind it back to my previous article on Uber Technologies, Inc. (UBER) and the initial sale to the public. The.
3 Investing Experts Share Their Outlook for DWAC & CFVI
Feb 10, 2022
Digital World Acquisition Corp. (DWAC) and Cantor Fitzgerald Acquisition VI (CFVI) have both experienced a surge in interest from retail investors in recent months due to their proposed mergers with Trump Media and Rumble. Both stocks are SPACs – special purpose acquisition companies. These blank-check vehicles raise money through an IPO, and then aim to acquire or merge with another company. The SPAC market raised $96 billion in the first quarter of 2021 alone, according to the Harvard.
Colfax: A Spinoff Bet on the Rales Brothers
Feb 10, 2022
The Edge’s data shows what may be the next step in the Rales brothers value creation process. The Rales brothers are the co-founders of Danaher (DHR) and are known for their hugely successful Spinoff of Fortive (FTV) in 2016. The Edge believes the brothers will be using the same playbook to Spinoff Colfax’s “FabTech” business (to be spun off as ESAB) from its “MedTech” business — the parent after the Spinoff, which is to be renamed Enovis — via a tax-free distribution.
Turo Peers Burn Out as Car-Sharing IPO Looms
Jan 26, 2022
Weak trading by peers is complicating an initial public offering from car-sharing firm Turo Inc. Turo, which filed for an IPO earlier this month, is nearing public markets during a crossroads for stocks exposed to the so-called gig economy. Uber Technologies Inc. and Airbnb Inc., for example, have underperformed during the wild market swings that started the year, a trade that resumed on Tuesday.
IAC Has Created $128bn of Value for Shareholders & There’s More To Come. Here’s Why…
Jan 4, 2022
What happens when metrics are at the higher end of expectations? Government stimulus money has run dry and mostly everything is priced in. What do you do next? Smart managements have recognized hidden value inside themselves and have given shareholders enormous returns. Specifically with Spinoffs.
TechInAsia – Why Traveloka may have been wise to give up SPAC route
Dec 31, 2021
When the SPAC market was ultra hot, Indonesia’s Traveloka was among several notable firms in the region that planned to ride the wave. In April, the countryʼs leading travel unicorn was in advanced talks with Bridgetown Holdings, a special purpose acquisition company backed by billionaire investors Richard Li and Peter Thiel, to go public. By merging with Bridgetown, Traveloka could boost its valuation to US$5 billion.
UBER’s Struggle Since The IPO & How It Has 50% Upside From Here
Dec 13, 2021
Uber Technologies, Inc. (UBER) listed on May 10th, 2019, with a build-up, subsequent fanfare, and a management promising big thigs for investors. It did not live up to this promise. After The Edge highlighted it was one to be avoided, a few days later after the snap-crackle-and-pop of the IPO, CEO Dara Khosrowshahi acknowledged Uber’s rocky trading debut and indicated “‘tough public market times could take months.” It would take almost another year and half for investors to get their money back.
Insider Banks on Jackson Financial
Dec 5, 2021
An interesting open market purchase took place recently (November 12) at Jackson Financial (JXN), observes Jim Osman, editor of the specialty advisory service, The Edge Spinoff Report.
BuzzFeed Is About to Go Public — and Its Employees Are Walking Out in Protest
Dec 2, 2021
BuzzFeed shareholders will vote today to take the company public via a merger with a special-purpose-acquisition company, or SPAC. The deal is expected to close Friday. By Monday, the company could start trading under the stock ticker BZFD. Shares are expected to trade for around $10. Jonah Peretti, BuzzFeed’s CEO, has already sent out invitations for the ringing of the bell on the floor of NASDAQ and for a celebratory dinner at the Indian restaurant Sona, where he will perhaps chow down on $38.