Podcast: Endeavour Cancels IPO
Peloton plummets on first day of public trading. General Motors may be getting closer to reaching a deal with its striking workers. And Endeavour Cancels IPO.
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—when it started trading in its initial public on Thursday. The only problem is that the IPO was priced at $29 a share, $2 higher.
Peloton (ticker: PTON) makes high-tech stationary bikes. And it was the latest in a series of disappointing public offerings from so-called unicorns— companies with private market valuations above $1 billion. Uber and Lyft’s public offerings were both disappointing, and WeWork just postponed its IPO in response to investor skepticism about its valuation.
Things didn’t get much better for Peloton after its stock started trading—shares fell 11% by the end of Thursday’s session.
The jump came after the news that the auto maker was getting closer to reaching a deal with its striking workers. As part of the negotiations, GM agreed to reinstate health insurance for its 48,000 employees who are members of the United Automobile Workers union.
And all of the unsettled proposals were at the “main table” by Thursday, which means that the two sides could reach a deal soon, as long as the talks don’t break down. GM’s workers have been on strike since September 16. One analyst estimated that the company could be losing about $50 million in earnings a day from lost production.
—in its initial public offering. At least, that’s what it planned until Thursday, when it reportedly cancelled the IPO.
Endeavor is a talent agency and events company—it owns 50% of the mixed-martial-arts business UFC. It had originally planned to sell shares at a market value of $7.8 billion in an IPO today.
But those plans hit a serious speed bump Thursday. First the company decided to scale down its IPO plans. Then it decided to withdraw it altogether—that’s according to the Wall Street Journal. While the report didn’t specify why, the news came after Peloton’s IPO proved to be unpopular.
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