Funding secured. After vehemently denying that his company would go to capital markets to raise funds, Elon Musk has changed his tune. Stay off the weed, Treelon.
Tesla is looking to raise $2B through a stock sale in order to fund a massive expansion. Turns out building new factories in Germany and China ain’t cheap. Musk himself plans to buy $10M and underwriters will have the option to purchase $300M worth of shares.
The filing also included details of an investigation launched by the SEC as to the regular financial agreements that Tesla operates under. The EV makers auditor, PwC, apparently narced them out to the SEC and raised “critical audit matters” that led to the investigation. My fingers are crossed that this leads to financial misstatement!
The golden goose. Italian luxury sneaker brand, Golden Goose was gobbled up by private equity firm Permira for $1.05B. That’s a lot of sneaks. The brand boasts celebrity purchasers Taylor Swift and Selena Gomez, who pay up to $435 per pair.
Dr. Martens owner, Permira is buying the Golden Goose from US buyout firm, Carlyle Group, who helped the company expand from seven stores and $108M in sales to ninety stores and $280M. Stratton Oakmont is expected to facilitate an IPO.
All the Way Down. Wayfair is cutting 3% of its job force, or about 500 workers, as the company has struggled to become profitable. In fact, Wayfair hasn’t had a profitable quarter since the furniture and home good company went public in 2014. I wonder if that still qualifies them for a participation trophy.
The company is valued at $8.2B but shares fell 13% on the news yesterday, and just over 24% in the past year. Wayfair’s entire business model is in question. Shipping things like sofas can be expensive, especially when customers return the goods. It will report Q4, including Holiday earnings on February 28, and investors will hope to see narrowing losses.
What a Looker. Google announced that it officially closed the $2.4B deal that saw the tech giant purchase data analytics company, Looker. This was the first move made under Thomas Kurian in his new role as the head of Google’s Cloud division, and one that the company is, *clears throat* looking forward to growing.
One key to the deal is that Looker will continue to provide services for companies that use platforms other than Google’s cloud. Huawei would be proud.