On Mar. 17, 2014, The New Yorker magazine’s James Suroweicki wrote “One-Hit Wonders” about the pressure for startups to cash in on an initial public offering (IPO) based on a single hit product like a mobile game app like Candy Crush or Angry Birds.
Copyright 2014 DJ Cline All rights reserved.
On May 28, 2012 The New Yorker’s James Surowiecki wrote “Unequal Shares” about Facebook’s Mark Zuckerberg creating two classes of shares in the IPO in what is called a dual class structure. Google, Groupon, LinkedIn, Yelp and Zynga did the same when it went public. It is a strategy to keep control of a company and avoid short term pressure from investors but the stock can under perform in the market. IPOs are not as attractive as remaining private or being bought by another company.
Copyright 2012 DJ Cline All rights reserved.