As the dust settles on Alibaba’s IPO, the single largest initial public offering to date, experts have turned their attention to a less-celebrated aspect: the relative lack of shareholder control in firm operations. Alibaba listed on the NYSE, an unexpected choice over the Hong Kong Stock Exchange1 Although every Alibaba share technically has equal rights,…
Month: March 2015
As tech acquisitions increase, shareholders’ voices diminish even further
Two of world’s largest technology companies, Facebook and Google, both opted for a dual-class capitalization structure for their respective initial public offerings (IPOs).1 Under this dual-class structure, the public holds Class A common stock with only one vote per share, while an insider’s Class B common stock is entitled to multiple votes per share.2 This…
Major League Soccer Collective Bargaining Agreement Negotiations May Lead to a Player Strike, but Are Potential Antitrust Ramifications Overstated?
Major League Soccer (MLS) and the MLS Players’ Union are currently negotiating over a new Collective Bargaining Agreement. In the world of major American sports leagues, this is not an unusual development, as sports leagues and player unions regularly negotiate every few years for new collective bargaining agreements.1 This negotiation, however, is not like every…
The Rate Escape
Over the past two weeks the credit rating agency Standard and Poor’s (S&P) has come close to finalizing settlements with both the Securities Exchange Commission (SEC) and the Department of Justice (DoJ) over pending litigation.1 In the wake of the 2008 financial crisis, the government, the public, and regulators across the country have pointed their…
Uber Altering Approach Towards Regulators
Uber, the smartphone-based ridesharing service long known for operating in the face of unknown legal consequences while daring regulators to bring legal action,1 may be adopting a new approach. Instead of facing regulators with defiance, the company has started to push for new laws that would bring its services into a clearer status of legality.2 …
HP to Grow Networking Business Through Aruba Networks Acquisition
In its first major transaction since announcing plans to split itself into two last year, Hewlett-Packard agreed to buy Aruba Networks on March 2, 2015.1 The deal, which is expected to close in the second half of this year, is valued at $3 billion, or $2.7 billion net of cash and debt.2 Aruba Networks, based…
SEC’s increasing use of administrative law courts
The SEC’s increasing use of administrative law courts for trying cases has raised eyebrows throughout the legal community. In light of recent high-profile acquittals in federal district courts, the SEC has brought more actions before its administrative courts, with a 10% increase in the last year alone.1. Evidence suggests that the choice of forum has…