Square’s IPO Terms Put Valuation Below Latest Funding Round

0
769

MK-CP858_SQUARE_P_20141006175833

BY DOUGLAS MACMILLAN and TELIS DEMOS

Mobile payments startup Square Inc. is seeking a valuation of about $3.9 billion, according to a new securities filing, far less than the $6 billion price tag put on the firm a year ago and a sign that recent sky-high private values are facing increasing market skepticism.
The San Francisco-based company on Friday said it expects to sell 27 million shares at between $11 and $13 each in an initial public offering, much less than what some investors paid for their shares a year ago.
Square’s pricing could serve as a reality check for the more than 120 tech companies with valuations of at least $1 billion, a club that has ballooned this year. Six-year-old Square’s IPO comes as big-name investors pushed valuations into the stratosphere for companies including Airbnb Inc., Dropbox Inc., and Uber Technologies Inc., which could test the public market as soon as next year.
“It’s a chickens-coming-home-to-roost moment,” said Rett Wallace, CEO of Triton Research LLC, which analyzes pre-IPO companies. “It might be harder for future IPOs because of how difficult it is to predict what they’ll be worth.”
“Read the Full Article at www.wsj.com >>>>”

ATTENTION READERS

We See The World From All Sides and Want YOU To Be Fully Informed
In fact, intentional disinformation is a disgraceful scourge in media today. So to assuage any possible errant incorrect information posted herein, we strongly encourage you to seek corroboration from other non-VT sources before forming an educated opinion.

About VT - Policies & Disclosures - Comment Policy
Due to the nature of uncensored content posted by VT's fully independent international writers, VT cannot guarantee absolute validity. All content is owned by the author exclusively. Expressed opinions are NOT necessarily the views of VT, other authors, affiliates, advertisers, sponsors, partners, or technicians. Some content may be satirical in nature. All images are the full responsibility of the article author and NOT VT.
Previous articleOur Country Is a Nightmare: Swedes Descend on Lesbos to Dissuade Migrants
Next articleFrench police target Charlie Hebdo witness