In today’s fast-paced business landscape, staying informed about the latest developments is crucial for professionals and investors. This article highlights noteworthy recent events in the business world, covering a range of topics from company valuations and IPOs to executive departures and legal cases. Let’s dive into the headlines that have been making waves.
Instacart Set to Raise IPO Price Target After Successful Arm Debut [WSJ]:
Recently, Instacart, the popular grocery-delivery company, is garnering attention as it plans to increase its IPO price target. With shares expected to be sold for $28 to $30 apiece, the fully diluted valuation could reach nearly $10 billion. While this falls short of its previous $39 billion valuation, it reflects shifting investor interest in startups.
Arm Already Looks Stretched [WSJ]:
Arm, a leading chip-design firm, has been the talk of the town following its IPO roadshow meetings. While a doubling of market value over seven years may seem promising, concerns arise when considering revenue projections. Arm expects revenue growth of 11% in the current fiscal year and mid-20% range in the following year, indicating total revenue of about $3.7 billion by fiscal 2025. The current stock price trades at a generous multiple of nearly 18 times that projection.
Citigroup’s Europe Boss Departs Amid CEO Fraser’s Sweeping Overhaul [Bloomberg]:
Citigroup employees brace themselves as the departure of Kristine Braden, the head of the Europe cluster, signals anticipated job cuts. Having joined Citigroup in the 1990s, Braden held various significant roles before becoming chief of staff. This move aligns with CEO Jane Fraser’s ongoing efforts to revamp the organization.
“One of the Most Hated People in the World”: Sam Bankman-Fried’s 250 Pages of Justifications [NYT]:
Sam Bankman-Fried, a prominent figure in the world of cryptocurrency, finds himself in a challenging situation. In the aftermath of FTX’s collapse, Bankman-Fried, arrested and charged with fraud, wrote lengthy self-justifications encompassing childhood memories and mathematical calculations. Describing himself as broke and wearing an ankle monitor, Bankman-Fried acknowledges the perception that he may never achieve a positive net impact.
Ex-Celsius Crypto Lender Exec Cohen-Pavon Pleads Guilty, Will Cooperate with US Probe [Reuters]:
In a significant development, former Celsius chief revenue officer Cohen-Pavon has admitted to manipulating the price of the exchange’s crypto token Cel. Facing charges of market manipulation and wire fraud related to Celsius’ 2022 collapse, the defendant has agreed to cooperate with the authorities. This cooperation may have far-reaching implications for the investigation.
Former Wells Fargo Executive Might Face Prison Time in Fake Accounts Scandal [WSJ]:
The fallout from the fake accounts scandal continues as former Wells Fargo executive Carrie Tolstedt faces the possibility of prison. Tolstedt’s lawyers have requested three years probation, while the Justice Department seeks a one-year sentence. She pleaded guilty to obstructing an investigation into sales practices through her involvement in a memo back in May 2015.
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