Here's who will get rich from Pinterest's IPO - CNBC

Pinterest is seeking a valuation of up to $9 billion when it debuts on the public market this spring, which will rake in hundreds of millions for each of its founders and other major stakeholders. Pinterest's valuation was said to be $12 billion nearly two years ago when it raised its last round of funding.

The company plans to sell 75 million Class A shares at $15 to $17 per share when it starts trading on the New York Stock Exchange under the symbol "PINS," according to a regulatory filing. Pinterest will use a dual-class structure to concentrate voting power among major stakeholders including co-founders Benjamin Silbermann and Evan Sharp. These stakeholders will own Class B shares.

Lyft similarly debuted with a dual-class structure when it hit the public market earlier this month. But unlike Lyft, whose founders are the sole owners of Class B shares, other major stakeholders in Pinterest like Andreessen Horowitz and FirstMark will also own this class of stock.

Pinterest is still on the early end of a wave of large tech IPOs anticipated this year. Uber and Slack are among some of the biggest public debuts expected to hit the public market as well.

Here's what each of Pinterest's major stakeholders stand to hold after its public offering, based on their post-IPO share counts and assuming the stock prices at the midpoint of its stated range at $16 per share:

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Watch: Pinterest sets its IPO price range at $15 to $17

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https://www.cnbc.com/2019/04/08/pinterest-ipo-the-largest-shareholders.html

2019-04-08 13:30:15Z
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GE stock may be poised to crash more than 50% - Yahoo Finance

Tough start to the week for beleaguered General Electric (GE).

GE’s stock plunged as much as 6% in pre-market trading Monday as influential JPMorgan analyst — and long-time GE critic — Stephen Tusa slashed his rating on the stock to Underperform. It was back in December that Tusa surprisingly lifted his rating. Tusa dropped his price target on GE’s stock by a $1 to $5, suggesting it could crater by more than 50% from current levels.

Tusa returned to the well in his focus on GE’s pressured cash position in his latest attack. The analyst thinks Wall Street is “significantly over projecting” the bounce in free cash flow in coming years. Underperforming legacy assets in insurance and power are likely to weigh on the cash flow output of the business, Tusa contends.

Tusa isn’t alone in taking a bearish stance on a stock that has magically gained 55% from the December lows on hopes new CEO Larry Culp could stabilize the business this year and deliver a turnaround by 2020.

“This time around, we find it extraordinary that some analysts are suggesting that a potential GE free cash flow loss of up to $4 billion this quarter (vs. a loss of $1.7 billion in 1Q18) would be ‘fair’ or ‘expected,’” said Gordon Haskett analyst and longtime GE critic John Inch in a note Monday. “We believe that magnitude of cash loss could be both highly problematic and poorly received by the bond market and debt ratings agencies. It would also result in GE incrementally drawing on its revolver, and rising Debt/EBITDA – which would not be moving the debt needle in the right direction.”

Inch maintained his Underperform rating and $7 price target on GE’s stock. GE will announce its first quarter earnings later this month.

GE said 2019 will be a ‘reset year’

Culp continues to pull no punches in his comments on turning the company around, telling Wall Street at an investor day in March that 2019 will be a “reset year” and that GE’s challenges are “complex.” Chief Financial Officer Jamie Miller told Yahoo Finance that Culp is looking at GE through a “reality-based lens,” counter to many other top executives at the company over the years.

Investors appear to have forgotten those realities, and they are plentiful. For example, GE sees first quarter earnings down “significantly” as it works through issues at its power and GE Capital businesses.

However, some analysts like Tusa and Inch have surely not forgotten those realities.

Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter @BrianSozzi

Read more:

• General Electric still looks like a colossal mess

• GE is one of the most complicated companies in Corporate America

• Is General Electric ridiculously overvalued?

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2019-04-08 12:31:00Z
CBMiWmh0dHBzOi8vZmluYW5jZS55YWhvby5jb20vbmV3cy9nZS1zdG9jay1tYXktYmUtcG9pc2VkLXRvLWNyYXNoLW1vcmUtdGhhbi01MC0xMjMxNDQxMDguaHRtbNIBAA

Pinterest seeks $15-$17 per share in IPO, below last private valuation - Investing.com

© Reuters. FILE PHOTO: A Pinterest banner hangs on the facade of the NYSE in New York

(Reuters) - Pinterest (NYSE:) Inc on Monday set a price range of $15 to $17 per share for its initial public offering of 75 million shares, valuing it below the $12 billion at which the online image-search company sourced its last fundraising in 2017.

At the upper end of its target range, the company could have a market valuation of about $11.30 billion and could raise $1.3 billion in net proceeds, taking into account restricted stock units and options.

Reuters had reported in January Pinterest, which plans to list under the symbol "PINS" on the New York Stock Exchange, could raise around $1.5 billion and that the IPO was likely to come in the first six months of 2019.

The company, which owns the image search website known for the food and fashion photos that its users post, reported annual revenue of $755.9 million in 2018, up 60 percent from a year earlier.

But it remains unprofitable even though its net loss narrowed to $62.97 million in 2018 from $130 million a year earlier.

The company will go public with a dual-class share structure to concentrate voting power with Class B shareholders, which included Co-founder, President and Chief Executive Officer Benjamin Silbermann, according to a filing with the U.S. Securities and Exchange Commission.

Pinterest would join a bevy of high-profile companies that went public, including Lyft Inc (NASDAQ:) and Levi Strauss (NYSE:).

Ride-hailing company Uber Technologies Inc is also expected to kick off its IPO this month, according to sources.

Profitability has been a key theme for companies that have gone public since the start of the year. Lyft's shares slipped below their IPO price on the second day after its debut as analysts did not see a clear path to profitability.

IPOs of Pinterest and other such loss-making unicorns have presented a predicament for investors sitting on the fence since they do not want to miss out on popular companies with fast growth, but at the same time have to weigh the risks of businesses with unproven economics.

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2019-04-08 12:06:00Z
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Pinterest IPO price range would value the company at as much as $9 billion - CNBC

Image sharing website Pinterest set a price range of $15 to $17 per share for its initial public offering of 75 million shares, as per a filing with the U.S. Securities and Exchange Commission on Monday.

At the upper end of its target range, the company would be valued at $9 billion and could raise $1.3 billion in net proceeds.

Pinterest, which was valued at $12 billion in its last fundraising round in 2017, will list under the symbol "PINS" on the New York Stock Exchange.

Reuters had reported in January Pinterest could raise around $1.5 billion and that the IPO was likely to come in the first six months of 2019.

The company reported annual revenue of $755.9 million in 2018, up 60 percent from a year earlier. But it remains unprofitable even though its net loss narrowed to $62.97 million in 2018 from $130 million a year earlier.

The company will go public with a dual-class share structure to concentrate voting power with Class B shareholders, which include co-founder, President and Chief Executive Officer Benjamin Silbermann.

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https://www.cnbc.com/2019/04/08/pinterest-sets-its-ipo-price-range-at-15-to-17.html

2019-04-08 10:22:22Z
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‘Outrageous Monster’: Nissan Shareholders Vent, Cut Final Tie With Ghosn - The Wall Street Journal

Former Nissan Chairman Carlos Ghosn leaving his lawyer's office in Tokyo in March. Photo: kazuhiro nogi/Agence France-Presse/Getty Images

By

Sean McLain

Sean McLain
The Wall Street Journal
• Biography
• @McLainSean
• sean.mclain@wsj.com

Updated April 8, 2019 7:46 a.m. ET

TOKYO—Some Nissan Motor Co. NSANY -0.24% shareholders called for the resignation of Chief Executive Hiroto Saikawa at a raucous meeting where the auto maker severed its last ties to longtime leader Carlos Ghosn.

The meeting was the first opportunity for shareholders to vent their concerns with management since Mr. Ghosn’s surprise arrest on Nov. 19. Many questioned Nissan’s assertion that top executives were unaware of the extent of Mr. Ghosn’s alleged wrongdoing, which includes a charge by prosecutors that he underreported his compensation for eight years.

“You found this out when he was arrested? You are disqualified for not being able to discover this,” said one shareholder.

Carlos Ghosn resigned as chairman and CEO of French auto maker Renault. Thierry Bolloré is the company’s new chief executive, and Michelin CEO Jean-Dominique Senard was named chairman. Here’s what’s next for the company. Photo composite: Laura Kammermann

Mr. Saikawa asked for shareholders’ support to stay on in his position, saying he hoped to avoid disrupting a company already shaken by the allegations against Mr. Ghosn. “I never said we didn’t have responsibility. The problem built up over 20 years, and we cannot correct it overnight,” Mr. Saikawa said.

Shareholders voted to remove Mr. Ghosn from the Nissan board, ending his final connection with the company he led for nearly two decades, and they elected Renault SA RNO -0.60% Chairman Jean-Dominique Senard to replace him. That ensures the French car maker, which owns 43.4% of Nissan, retains the full complement of board members mandated by its shareholding agreement with Nissan. Mr. Senard will become vice chairman of Nissan’s board, a newly created position.

Mr. Ghosn says he is innocent. On the compensation question, he says he discussed ways of receiving more pay after retirement but nothing was decided and so he didn’t have to report it.

The vote came after a three-hour meeting at which more than 20 shareholders spoke, often criticizing both Mr. Saikawa and Mr. Ghosn. The same shareholder who said Mr. Saikawa should be disqualified also called Mr. Ghosn an “outrageous monster.” Reporters could hear the questions but the shareholders’ identities weren’t disclosed.

New Suspicions

How Nissan money ended up with Carlos Ghosn, according to prosecutors and Nissan’s internal investigation. Mr. Ghosn’s representatives say neither Mr. Ghosn nor his family benefited from Nissan payments. 

Nissan

Motor

A Nissan

subsidiary

Nissan

Middle

East

$15

million

from

2015 to

2018

$5

million

Company

controlled

by Carlos

Ghosn

Suhail

Bahwan

Automobiles

Nissan distributor in Oman

and other countries

Sources: Japanese prosecutors; Nissan investigation

Mr. Ghosn was arrested again on April 4 on new suspicions he abused his position at Nissan for personal gain, and he is currently in jail. Prosecutors say they suspect Mr. Ghosn diverted a portion of Nissan payments to a distributor in Oman for his personal use. He denies wrongdoing. The arrest ended a monthlong period in which he was out on bail of nearly $9 million.

One shareholder spoke in defense of Mr. Saikawa, saying: “If it weren’t for Mr. Saikawa, Mr. Ghosn would be enjoying a ride on his yacht.” Nissan’s internal investigation, according to people familiar with it, found evidence Mr. Ghosn may have diverted company money to purchase a yacht.

A Tokyo-based spokesman for Mr. Ghosn didn’t immediately have a comment on the shareholder meeting.

Mr. Ghosn’s wife, Carole, was with him at his Tokyo apartment when he was arrested. She said in an interview the same day that prosecutors asked her to voluntarily submit to interrogation but that she refused. On Friday, Mrs. Ghosn flew to Paris. A family representative said she returned to France to encourage the French government to help her husband.

Write to Sean McLain at sean.mclain@wsj.com

Related Coverage

• Carlos Ghosn to Stay Behind Bars for at Least 10 Days
• ‘It Was Scary as Hell’: The Rearrest of Carlos Ghosn Opens New Front in Inquiry
• Renault Board Says Probe Finds Questionable Expenses
• Nissan Probes Whether Ghosn Channeled Company Money for Personal Use
• Why Carlos Ghosn Fell: Plotters at Nissan Feared a French Takeover

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2019-04-08 11:46:00Z
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Pinterest sets its IPO price range at a discount to its most recent valuation - CNBC

Pinterest is eyeing a valuation of up to $9 billion when it debuts on public exchanges later this spring.

That's something of a discount from the company's most recent valuation on the private markets, but nonetheless keeps Pinterest in the same neighborhood as other major tech companies set to IPO in 2019.

The image sharing social network said in a regulatory filing Monday it would sell 75 million shares at $15 to $17 per share. At the upper end of its target range, the company could raise $1.3 billion in net proceeds.

Lyft was the first out of the gates in a heavyweight class of tech IPOs. The company raised $2.3 billion in its offering and has seen a rocky start to trading. Uber, Slack, and Postmates have all filed to go public this year.

Pinterest was valued at $12 billion in its last fundraising round in 2017. CNBC reported last year the company was nearing $1 billion in ad revenue.

The company reported $756 million in 2018 revenue in its initial IPO prospectus. Revenue grew 60% year over year, but still made for a net loss of $63 million.

Pinterest will list under the symbol "PINS" on the New York Stock Exchange. The company will go public with a dual-class share structure to concentrate voting power with Class B shareholders, which include co-founder and CEO Benjamin Silbermann.

—Reuters contributed to this report.

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2019-04-08 11:42:14Z
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Top 5 Things to Know in the Market on Monday - Investing.com

© Reuters.

Here are the top 5 things you need to know in the markets on Monday, April 8

1. Wall Street Set to Open Lower

Wall Street is set to open the week in cautious fashion, consolidating after last week’s gains. At 05:30 AM ET, the contract was down 4.6 points or 0.2%, the contract was down 57 points, or 0.2%, while the tech-heavy contract was down 14 points, also a drop of 0.2%.

After a weekend without clear progress on U.S.-China trade talks (beyond the usual spin), the market will be looking to the start of earnings season with trepidation, as a quarter of mostly weaker-than-expected economic data find their expression in individual earnings stories.

Overnight, Asian markets closed broadly lower, with sentiment not helped by reports of a rise in bad loans at Chinese lenders and a three-year low in Japanese . European markets also opened lower, as weaker-than-expected for February added another verse to a first quarter that has been a chapter of woe.

2. Bonds Steady After Payrolls

The domestic data calendar is light, with orders at 10 AM ET (14:00 GMT). The consensus forecast is for a 0.5% drop in orders in March, after a 0.1% increase in February.

Bond markets have steadied in the wake of a broadly positive on Friday that showed job growth ahead of expectations and wage pressures easing slightly. The is – just – back below 2.50%, amid rising expectations that the may cut interest rates later this year.

The Fed is under pressure from President Donald Trump to cut rates and restart its bond-buying program. It could come under pressure from other parts of Washington later this week as the spring meeting of the International Monetary Fund and World Bank begin. The IMF’s update of its World Economic Outlook is likely to reflect downgraded growth forecasts across the world.

3. Oil at New Highs on Libya Turmoil

Crude oil prices hit another new high for the year after signs of rising violence in OPEC member , stoking fears that the war-torn country could be in for yet another spell of export disruptions.

The benchmark contract hit a five-month high of $63.53 a barrel earlier. It has held that level, more or less, in the wake of comments by Saudi Oil Minister Khalid al-Falih that global oil stocks are still clearly above their five-year average, hinting at a desire to extend the current “OPEC+” deal on output restraint past June.

Al-Falih also said that orders for the debut bond of have probably topped $30 billion, a bid-to-cover ratio of over 3.

4. Brexit Deadline Looms

OK, this week really IS crunch time for Brexit. As it stands, the U.K. is due to crash out of the EU without any transitional arrangements in place on Friday at midnight in Brussels.

It shouldn’t come to that, though. U.K. Prime Minister Theresa May has already requested a further deadline extension to June 30, and some in the EU want an even longer one – something that would give time for a thorough rethink on future relations.

May signalled at the weekend that she had given up trying to get parliament to approve her Withdrawal Agreement. However, her talks with the opposition Labour Party over the weekend, which aimed at finding a cross-party solution (or, cynics said, someone to share the blame with) have yielded nothing.

5. Pinterest to Start Marketing for IPO

After Lyft 's (NASDAQ:) bumpy first week as a public company, the owners of image-sharing site Pinterest (NYSE:) appear to be taking a cautious approach to their company’s IPO.

The Wall Street Journal reported that marketing for the shares will begin this week at a range below where the company last sold stock to pre-IPO investors. The last funding round sold stock at $21.54, giving Pinterest a valuation of $12 billion.

Pinterest is the second big tech IPO of the year after Lyft. Although the ride-hailing company ended its first week above its IPO price, the volatility of last week was a clear reminder of the risks involved in bringing unprofitable startups to market at eight-digit valuations.

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2019-04-08 09:44:00Z
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