Move over FANG! There may be another acronym on investors lips in the New Year.
Rob Cox, the global editor at Reuters Breakingviews, says Spotify, Lyft, Airbnb, and WeWork - aka SLAW - will be the next generation of disruptive companies to watch.
“We think they’re going to be a great way to play a whole bunch of different ways that we think about working, that’s WeWork; the way we think about playing, Spotify, and the way we get around the world and have fun, whether it’s Airbnb when we travel or of course Lyft,” he said.
These start-ups, all of which are candidates to tap the public markets in 2018, are shooting to change more than the way people consume products, though. Spotify, for example, is reportedly looking to bypass the traditional IPO process entirely, eschewing underwriters, and list its shares directly on the New York Stock Exchange.
Cox says that would be a big blow to bankers.
“They’re going to lose out because this deal is going to go straight to market,” he said. “They are not going to underwrite the IPO, so they’re not going to get the 7 percent [fee] on the deal.”
Lyft meanwhile, which just hired a new vice president of investor relations, would be the first time investors get an opportunity to buy into transportation as a service -- an opportunity, Cox says, is disruptive in its own right.
For full interview [click here](https://cheddar.com/videos/the-tech-ipos-to-watch-in-2018).
Joe Cecela, Dream Exchange CEO, explains how they are aiming to form the first minority-controlled company to operate an exchange in U.S. history. Watch!
A Michigan judge is putting sponges in the hands of shoplifters and ordering them to wash cars in a Walmart parking lot when spring weather arrives. Genesee County Judge Jeffrey Clothier hopes the unusual form of community service discourages people from stealing from Walmart. The judge also wants to reward shoppers with free car washes. Clothier says he began ordering “Walmart wash” sentences this week for shoplifting at the store in Grand Blanc Township. He believes 75 to 100 people eventually will be ordered to wash cars this spring. Clothier says he will be washing cars alongside them when the time comes.
The State Department had been in talks with Elon Musk’s Tesla company to buy armored electric vehicles, but the plans have been put on hold by the Trump administration after reports emerged about a potential $400 million purchase. A State Department spokesperson said the electric car company owned by Musk was the only one that expressed interest back in May 2024. The deal with Tesla was only in its planning phases but it was forecast to be the largest contract of the year. It shows how some of his wealth has come and was still expected to come from taxpayers.
