Reddit's IPO Twist

Reddit: Lower IPO Valuation

Based on early investor feedback, Reddit is seeking a valuation of at least $5 billion for its upcoming initial public offering. This figure is higher than current private market estimates. The San Francisco-based social media company and its advisors aim for a mid-range billion-dollar valuation, subject to change depending on the IPO market's recovery. There's potential for a public listing as soon as March.

Private trades value Reddit below $5 billion, with estimates ranging from $4.5 to $4.8 billion. Due to the limited liquidity of private shares, these figures might be lower than what could be achieved in an IPO. Details regarding the IPO, including valuation and timing, are still being finalized.

🎯 GRIT TAKE: This situation reflects a broader downturn…upgrade to VIP to read the full GRIT Take. 

EVERGANDE: Court-Ordered Liquidation

Trading of China Evergrande shares was halted after they plunged over 20% following a Hong Kong court's decision to liquidate the company amidst a severe debt crisis in China. Once a leading property developer, Evergrande has been struggling with debt, highlighted by a default in 2021 and a failed last-minute restructuring deal.

In response to the broader property sector's challenges, the People’s Bank of China and the Ministry of Finance recently introduced measures to improve liquidity for developers. However, the property market in China remains troubled, further strained by the Evergrande crisis, according to Alexander Cousley of Russell Investments.

FanDuel: To List On NYSE

Flutter, the parent company of FanDuel, is set to list on the New York Stock Exchange, offering an alternative to sports betting giant DraftKings. This secondary listing complements Flutter's primary listing on the London Stock Exchange.

In the U.S., FanDuel leads the market with substantial gross and net revenue shares, outperforming rivals, including DraftKings, which has seen significant share price growth. Flutter aims to attract investors and capital for FanDuel under the ticker symbol FLUT. Despite competition from other players like BetMGM, Caesars Sportsbook, and Fanatics Sportsbook, FanDuel maintains a strong position in the market.

Headlines You Need To Know: 🎙

• Biden faces demands to strike Iran after attacks

• SoFI soars after posting a first-ever profit

• Big pharma is at a crossroads

• United CEO kickstarts Airbus talks amid Boeing delays

• Traders line up for emerging market bet

• Blackstone is building a data center empire

• Disposable vapes to be banned in the UK

One of The Largest Frauds In History

This company became one of the biggest accounting frauds in American history. Enron was an energy trading and utility company based in Houston, Texas. They were formed in 1986 following a merger between two energy companies. After the merger, Kenneth Lay became Enron's CEO. At that time, Lay took a completely different spin on the company, rebranding it into an energy trader and supplier. During the 1990s, they became a Wall Street darling and were one of the most hyped stocks throughout the decade.

In 1992, they were the largest natural gas provider in North America. Everyone wanted to own or be associated with Enron. In fact, Enron had a very close relationship with Former President George HW Bush and future President George W. Bush. In the early 2000s, the ship began to sink, causing Kenneth Lay to resign from CEO and Jeffrey Skilling to take over.

However, Skilling eventually resigned, causing Lay to take over. Within five days into Lay’s second tenure, a whistleblower reported that Enron was involved in massive accounting fraud. The stock price began to sink, and the feds swarmed in. Enron filed for a $65 billion bankruptcy, which was the largest then. Kenneth Lay was convicted on ten felony counts that would have put him in prison for 50 years. Unfortunately, he died of a heart attack six weeks after his conviction. Jeffrey Skilling is out of prison now after his 14-year prison sentence. You won’t believe this, but he wants to launch another energy company.

Chart of the Day

📊 The Global Distribution of Wealth

The author, publisher or insiders of the publisher may currently have long or short positions in the securities of the companies mentioned herein, or may have such a position in the future (and therefore may profit from fluctuations in the trading price of the securities). To the extent such persons do have such positions, there is no guarantee that such persons will maintain such positions.