Snap to File for IPO at Anticipated Value of $16.2 Billion to $18.5 Billion
Snap, Inc. will be setting the terms for its IPO on Thursday at a market value of $16.2 billion to $18.5 billion which includes 200 million shares at $14 to $16 per share. This is less than the original November 2016 valuation of $20-$25 billion, as reported by Bloomberg. Snap is offering stock that’s valued at “19.7 times forward advertising sales” compared to Facebook’s 19.4 at the time of its IPO. Twitter was valued at 13 times, according to Bloomberg Intelligence. Current standings for the public companies is 10.2 times for Facebook and 5 times for Twitter. This IPO is especially being watched as Snap has a reputation for being quiet about its earnings, and because Snap is not a Silicon Valley darling, rather comes from Southern California. The ephemeral photo app has evolved from a messaging app to a leading video mainstay among Millennials.
Samsung’s Reputation Plummets Meanwhile Company Chairman Arrested for Bribery
Samsung’s brand reputation has taken a hit this week. Due to last year’s Galaxy Note 7 recall, Samsung has fallen from #3 in reputation in the Harris Polls to #49. Last year, Samsung was in the top 10 with Amazon (which placed #1 this year), Apple, Google, Tesla and Netflix. 2016 was a rough year for Samsung with recalls from faulty batteries catching fire. In other news, the company Chairman Jay Y. Lee was arrested on allegations of bribery, perjury and embezzlement. A warrant was issued for Lee’s arrest for an investigation into whether the vice chairman of Samsung was involved with providing $38 million in exchange for “management succession.”
Uber Investigating Sexual Harassment Claim After Former Engineer Writes Blog Post
A former Uber engineer has detailed her experience at the company citing multiple cases of sexual harassment and gender discrimination. In the blog post, Susan Fowler said she reported sexual harassment to the human resources department at Uber and received discouraging responses when she reported inappropriate chat messages from a higher up:
“I was then told that I had to make a choice: (i) I could either go and find another team and then never have to interact with this man again, or (ii) I could stay on the team, but I would have to understand that he would most likely give me a poor performance review when review time came around, and there was nothing they could do about that. I remarked that this didn’t seem like much of a choice, and that I wanted to stay on the team because I had significant expertise in the exact project that the team was struggling to complete (it was genuinely in the company’s best interest to have me on that team), but they told me the same thing again and again.”
Uber responded by launching an investigation and hiring former U.S. attorney general Eric Holder to help lead the investigation. Subsequently, CEO Travis Kalanick tweeted the blog post stating the behavior was “abhorrent” and anyone engaging in the behavior would be fired.