Diamonds and Dogs

4/3/18

Spotify Technology (SPOT) is public. The Global music-streaming giant cane public today up 18% from the pre IPO pricing, but down 9% from its first trade. The company is using a so-called direct-listing process. That means it will let existing shares float publicly without offering any new shares on an exchange and without an underwriting bank to help buoy its stock price in the open market. Why? Spotify wanted to democratize the process and they didn't need to raise fresh money through the offering as is often the case with an IPO.

Good news, your stock may get taken over. Bad news, it may get taken over below the current market price. Viacom (VIAB) is down 3% on media reports that CBS is prepared to acquire the cable network and movie studio owner for below market value. Previous analyst reports have speculated that a deal would come at a premium to Viacom's share price. Sources told Reuters and CNBC that CBS chief executive Leslie Moonves would stay on for at least two years at the combined company.