Investors’ current yearning for the speedy growth of mobile advertising revenue at social media companies has overcome their wariness after the dreadful initial public offering of Facebook last year.
Social networking sites, including Facebook, are now trading at lofty levels. That clamor has created an environment where a company with expected revenue of $600 million this year will be able to seek billions of dollars in its offering. Michael Pachter, an analyst at Wedbush Securities, told The New York Times that Twitter was now valued at $15 billion to $16 billion, based on buying in the private market.
A look back on our reporting of the past week’s highs and lows in finance.
THURSDAY, SEPT. 12
A Short Post, a Big Splash: #TwitterIPO | The company announced â€" in a tweet â€" that it had filed paperwork with regulators to eventually sell shares in an initial public offering. DealBook »
Deal Professor: An Initial Filing, in Fewer Than 140 Characters | A prominent company, known around the world, has filed for what will most likely be the most anticipated stock offering since Facebook â€" and we know precious little about its business, says Steven M. Davidoff. DealBook »
2 Consultants to Banking Come Under Scrutiny | New York State has subpoenaed Promontory Financial Group and PricewaterhouseCoopers as part of a broader investigation into the industry’s perceived coziness with Wall Street. DealBook »
Long Battle for Dell Ends in Victory for Founder | Michael S. Dell is finally poised to buy full control of the company that bears his name, but a newly private Dell will most likely look much like the current one. DealBook »
Federal Judge Approves American Airlines’ Plan to Exit Bankruptcy | The decision was contingent on Justice Department approval of the carrier’s merger with US Airways. DealBook »
In Hilton Offering, a Losing Deal Turns Around | If successful, the Hilton public offering would be a powerful vindication of Blackstone’s real estate strategy and prove that even some seemingly doomed deals can yield generous returns given enough time. DealBook »
Regulators Ask Markets to Improve Technology | The Securities and Exchange Commission is asking the nation’s stock exchanges to introduce “kill switches†and other technological changes. DealBook »
WEDNESDAY, SEPT. 11
Regulator Says Rules on Insurer Don’t Work | Benjamin Lawsky, the New York financial regulator, has left a multistate test of a framework for insurers’ asset reserves, saying industry “gamesmanship†was only getting worse. DealBook »
Easy Money for Making Deals | The ease at which Verizon has borrowed $49 billion has fueled speculation that more companies will soon tap the debt markets for large acquisitions. DealBook »
Tribes Challenge New York’s Authority Over Their Lending | Two tribes, each halfway across the country, have come under scrutiny in New York over their online lending operations that offer short-term loans at exorbitant interest rates. DealBook »
Money Manager Takes Big Stake in News Corp. | Southeastern Asset Management, the money manager that fought the buyout of Dell, has taken a 12 percent voting stake in News Corporation, making it the second-largest investor behind Rupert Murdoch. DealBook »
New Chapter in a Clash Over Bonds in Argentina | The United States Supreme Court could decide within weeks whether to take up a drawn-out battle between the Argentine government and creditors seeking repayment on bonds that Argentina defaulted on over 10 years ago. DealBook »
TUESDAY, SEPT. 10
Lawyers for Corzine Seek Case’s Dismissal | Lawyers for the former New Jersey governor filed a motion to dismiss a civil case against him brought by the Commodity Futures Trading Commission, which regulated MF Global until its demise in 2011. DealBook »
Dow Index Replaces 3 of Its 30 Stocks | Alcoa, Bank of America and Hewlett-Packard have fallen out of favor lately with investors and will be replaced by Goldman Sachs, Visa and Nike. DealBook »
Deal Professor: A Trading Frenzy Over Oh-So-Hot LinkedIn Shares | Steven M. Davidoff asks, did LinkedIn benefit its shareholders with its recent sale of stock worth $1.2 billion at $223 a share? DealBook »
MONDAY, SEPT. 9
Invasive Tactic in Foreclosures Draws Scrutiny | Property-management companies are coming under fire for using questionable and possibly illegal tactics in their work for banks. DealBook »
Koch Brothers Make Offer of $7 Billion for Molex | The deal, for a company that makes electronics plugs for a range of products including the iPhone 5, is the biggest by Koch Industries in eight years. DealBook »
A $250 Million Pledge to a College Evaporates as a Deal Collapses | Centre College in Danville, Ky., announced in July that it had received a $250 million donation, the largest outright gift ever made to a liberal arts college, but it left out a small detail. DealBook »
DealBook Column: What Might Have Been, and the Fall of Lehman | Five years ago, the government abandoned Lehman Brothers to its fate. Andrew Ross Sorkin asks, was it a mistake, or did it help bring the financial crisis under control?DealBook »
The Trade: Seeking Answers From Green Mountain Coffee | The sales figures at Green Mountain, the roaster behind the popular Keurig coffee makers, don’t seem to add up, says Jesse Eisinger of ProPublica. DealBook »
WEEK IN VERSE
‘Blackbird’ | If the Twitter icon had a favorite Beatle it would be George Harrison. 140 characters is just right for the quiet types. YouTube »
‘Total Eclipse of the Heart’ | If Dell is serious about a turnaround, Bonnie Tyler’s 1983 power ballad should be their anthem. YouTube »
