Tag Archive | "the-investment"

Airbnb headed for a $1 billion valuation

Tags: , , , , , , , , , , , ,


AirbnbSocial bed and breakfast startup Airbnb is in the process of closing a $100 million round of funding led by venture capital firm Andreessen Horowitz that would raise the company’s valuation to more than $1 billion, according to TechCrunch.

This is a significant investment for Airbnb, which has previously raised $7.8 million, and comes days after actor-turned-investor Ashton Kutcher invested a significant amount of money in the company.

Kutcher, who was an early investor in Foursquare and the deal to purchase Skype back from previous owner Ebay, is increasingly being looked at in the investment world as someone to watch when it comes to predicting the next hot startup company.

Airbnb offers a service in which travelers looking for a unique experience (similar in scope to a bed and breakfast) can rent a living space from locals for a fee.  The service has seen incredible growth of 800 percent in the last year and had over 1.6 million local homes booked since it launched in 2008.

An investment this large may seem drastic, but Airbnb looks to be fulfilling a need in the marketplace. And while business trips and conference attendees will likely stick to booking hotel rooms, Airbnb could make a real splash with recreational travelers .

Tags:

Companies: ,




Article courtesy of VentureBeat » deals

Airbnb headed for a $1 billion valuation

Tags: , , , , , , , , , , ,


AirbnbSocial bed and breakfast startup Airbnb is in the process of closing a $100 million round of funding led by venture capital firm Andreessen Horowitz that would raise the company’s valuation to more than $1 billion, according to TechCrunch.

This is a significant investment for Airbnb, which has previously raised $7.8 million, and comes days after actor-turned-investor Ashton Kutcher invested a significant amount of money in the company.

Kutcher, who was an early investor in Foursquare and the deal to purchase Skype back from previous owner Ebay, is increasingly being looked at in the investment world as someone to watch when it comes to predicting the next hot startup company.

Airbnb offers a service in which travelers looking for a unique experience (similar in scope to a bed and breakfast) can rent a living space from locals for a fee.  The service has seen incredible growth of 800 percent in the last year and had over 1.6 million local homes booked since it launched in 2008.

An investment this large may seem drastic, but Airbnb looks to be fulfilling a need in the marketplace. And while business trips and conference attendees will likely stick to booking hotel rooms, Airbnb could make a real splash with recreational travelers .

Tags:

Companies: ,




Article courtesy of VentureBeat » deals

Chelsea Clinton’s Husband Is Starting A Hedge Fund

Tags: , , , , , , , , , , , ,


Marc Mezvinsky is back from his ski trip and ready to work, if you’re interested in investing or putting in a res.

The source, who heard the information firsthand from Chelsea’s hubby, tells us Mezvinsky has “decided to spearhead his own private [hedge] fund with two other guys,” and ideally will launch the company in the next few months. To help get the job done, the source adds that Mezvinksy will team up with “two guys from Goldman Sachs,” the investment banking mammoth where he worked from 2002 to 2008 (before joining 3G).

According to the source, since leaving 3G Capital, Mezvinsky — the son of Pennsylvania Congresswoman Marjorie Margolies-Mezvinsky and disgraced Iowa Congressman Ed Mezvinsky (who served five years in federal prison for fraud) — has stayed busy by “consulting on private projects,” hitting the gym and escorting his doting wife to charity events.

[NYDN]



Article courtesy of Dealbreaker

Bonus Watch ’12: Counting JPMorgan’s Bonuses Before They’ve Hatched

Tags: , , , , , , ,


Assuming the last quarter is an indication of the next three and- fingers crossed- nothing goes catastrophically wrong, JPMorgan employees may be looking at raises next year.

Bankers at J.P. Morgan, the investment banking unit of JPMorgan Chase (JPM), are in line for a 34% raise this year, if the bank keeps paying at its torrid first-quarter clip.The investment bank set aside $3.3 billion for compensating its 26,494 workers in the first quarter. That’s equivalent to $124,330 for the quarter and projects to $497,320 for the year.

[Fortune]



Article courtesy of Dealbreaker

Are Goldman Employees Being Told They’re Not Allowed To Leave Tokyo?

Tags: , , , , , , , , , , , , ,


Or, alternatively, that they’re free to leave but not then allowed to come back? According to John Carney, yes.

At least four Goldman Sachs executives flew into Japan last week to speak with nervous ex-pat employees about radiation fears, according to a person familiar with the situation. They also conveyed another message: don’t leave Japan and don’t leave Tokyo. Employees at the investment bank’s Japan offices are worried about radiation levels affecting their families, the person said. Many were asking if they could temporarily relocate out of the country or perhaps move to a location in southern Japan, farther away from troubled nuclear power plants. The were told that they should not leave Tokyo, according to the person.

Several meetings were held last week between senior Goldman executives and Tokyo-based employees. At least one meeting was held in a large conference room on one of the five floors of the Mori Tower in Tokyo, which houses Goldman’s offices in Japan…”The message was clear: no one is to leave. If you do leave, you can’t come back and expect to still work for Goldman,” the person said.

Goldman Sachs Told Employees Not To Leave Japan [NetNet]



Article courtesy of Dealbreaker

Warren Buffett Extends Challenge To Goldman Sachs

Tags: , , , , , , , ,


Last Friday, the Federal Reserve gave Goldman Sachs the greenlight to buy back the $5 billion of preferred stock Berkshire Hathaway bought when things got dicey in 2008. Though he knew the day was coming, Buffett was not looking forward to the news, as the terms of the investment were highly favorable for the Oracle of O, netting him more than $15 dollars a second. Over the weekend Buffett confirmed his displeasure and sent a message to Lloyd and Co that if they want their preferred shares back they’re gonna have to find him first, which will prove difficult, as he’s decided to take a page from from Osama bin Laden’s playbook.

Billionaire investor Warren Buffett warned that he would go to great lengths to avoid having his preferred shares in Goldman Sachs called in by the investment bank. Now he seems to be making good on his threats. On Saturday, Buffett boarded a private jet bound for Daegu, South Korea. “I’m going to be the Osama bin Laden of capitalism. I’m on my way to an unknown destination in Asia where I’m going to look for a cave,” he joked. “If the U.S. Armed forces can’t find Osama bin Laden in 10 years, let Goldman Sachs try to find me.”

Challenge accepted?



Article courtesy of Dealbreaker

Got Plans For June 30, 2011?

Tags: , , , , , , , , , , , ,


Bill Gross suggests marking it down on your calendar– as D-Day, The Sequel.

What I would point out is that Treasury yields are perhaps 150 basis points or 1½% too low when viewed on a historical context and when compared with expected nominal GDP growth of 5%. This conclusion can be validated with numerous examples: (1) 10-year Treasury yields, while volatile, typically mimic nominal GDP growth and by that standard are 150 basis points too low, (2) real 5-year Treasury interest rates over a century’s time have averaged 1½% and now rest at a negative 0.15%! (3) Fed funds policy rates for the past 40 years have averaged 75 basis points less than nominal GDP and now rest at 475 basis points under that historical waterline.

As a counter, one would argue (and I would partially agree) that the U.S. and indeed developed global economies must keep yields artificially low for some time if post Lehman healing is to take place. But that of course is the point. By eliminating QE II, the Fed would be ripping a Band-Aid off a partially healed scab. Ouch! 25 basis point policy rates for an “extended period of time” may not be enough to entice arbitrage Treasury buyers, nor bond fund asset allocators to reenter a Treasury market at today’s artificially low yields. Yields may have to go higher, maybe even much higher to attract buying interest.

Investors should view June 30th, 2011 not as political historians view November 11th, 1918 (Armistice Day – a day of reconciliation and healing) but more like June 6th, 1944 (D-Day – a day fraught with hope for victory, but fueled with immediate uncertainty and fear as to what would happen in the short term). Bond yields and stock prices are resting on an artificial foundation of QE II credit that may or may not lead to a successful private market handoff and stability in currency and financial markets. 15% gratuities may lie ahead, but more than likely there is a negative two-bit or even eight-bit tip lying on the investment table. Like I did 45 years ago, PIMCO’s not sticking around to see the waitress’s reaction.

Two-Bits, Four-Bits, Six-Bits, A Dollar [PIMCO]



Article courtesy of Dealbreaker

Unfounded Rumor Of The Afternoon: Departures At Highbridge?

Tags: , , , , , , , , , , , ,


Head of the Asia portfolio is said to be on the way out.

From the mailbag:

“Carl Huttenlocher, Highbridge MD and Head of Asia and member of the investment committee of Highbridge is leaving the firm. Carl has been with Highbridge since 2001.  Really unusual and strange as Carl spent most of 2010 raising assets for his Asia fund and firmly committed to clients that he plans on staying with Highbridge.  His fund is currently closed due to capacity. Seems that this will be a huge blow to Highbridge as Carl manages 2 billion usd in assets for the Asia fund and significant portion of Highbridge’s 10 bililon usd multistrategy fund.  He is the key man risk for the Asia fund so clients may not be pleased.
 
Also seen in the Four Seasons hotel lobby in Hong Kong– CEO Glenn Dubin and COO Todd Builione…coincidence?”



Article courtesy of Dealbreaker

CNBC Wants Some Serious Analysis Of What The Story About A Domino’s Delivery Person Saving A Customer Means For The Company

Tags: , , , , , , , , , , ,


For those of you not up on your pizza delivery news, a Domino’s employee reportedly saved an elderly woman, after noticing that she’d failed to place her daily order for three days. Deliverywoman Susan Guy went to check on the lady and found that she’d fallen and was unable to reach the phone and call for help. CNBC wants to know how the market will react to the news and currently has a guest on who’s being forced to offer some real analysis (he thinks the story is going to lift sales).

Now we’d like to turn to you, the investment community, for the answer. Agree/disagree? Have a contrarian take? And would it be fair to credit a certain hedge fund with a sizable DPZ stake for employing delivery people who save lives?



Article courtesy of Dealbreaker

Bonus Watch ’11: UBS’s Bonuses Were In The Pool

Tags: , , , , , , , , , , , ,


Where shrinkage ensued.

UBS increased salaries and bonuses this year to 11.5 billion Swiss francs from 11 billion in 2009, an increase of 4.3%. The bonus pool at the bank, however, decreased by 10% to 4.32 billion Swiss francs ($4.53 billion) from 4.8 billion Swiss francs in 2009.

UBS reportedly caved to public pressure in decreasing the size of its bonus pool. It plans to defer 1.55 billion Swiss francs, or about one third, of bonuses. The bank said in its earnings that “UBS’s compensation model has been refined in conjunction with shareholder representatives and takes into account the guidance of [...] major international bank regulators.”For employees who earn total compensation more than 250,000 francs, 60% of their bonus in shares will be deferred over thee years. The bank also said a number of employees in the investment bank will be “subject to higher levels of deferrals.”

UBS Increased Compensation And Reduced Bonuses In 2010 [FINS]



Article courtesy of Dealbreaker