Specifically, "improve" the amount of money it makes from its IPO. we've decided to take this opportunity to work with our advisors to see how we can make such improvements." Circulating a memo to its employees Friday, Roblox CEO David Baszucki explained that "based on everything we have learned to date. So instead, Roblox is going to put its IPO on a shelf, figure out how much it might realistically be able to charge for its shares, and return to the IPO market early next year. Roblox is going public through a direct listing rather than a traditional initial public offering (IPO). If you're an investor, that probably sounds like a good thing and has you excited at the prospect of enjoying a huge Roblox IPO this month - but Roblox had a different reaction.Īfter seeing the huge difference between the prices Airbnb and DoorDash got for their shares, and the value received by the investors who owned them at the end of the day, Roblox management seems to have concluded it would leave too much money on the table if it IPO'ed at the anticipated $8 billion valuation. The company said that the financial restatement was related to how and when it books Robux purchases as revenue instead of leaving it as deferred revenue.Airbnb shares more than doubled in price on their first day of trading, and DoorDash did nearly as well, rising 86%. Roblox, which has one of the top-grossing apps on Apple and Google devices, makes money by allowing its millions of users to buy virtual currency called Robux that can be used to dress up their avatar or advance in games. Roblox had originally planned to go public through a traditional IPO in December, but it delayed its debut a first time and changed to a direct listing after Doordash and Airbnb priced their IPOs well below where the stocks opened. Roblox said that it now expects its direct listing to take place in March, rather than February as it indicated in a prior filing. In the story, Reuters cited a memo sent to employees. The disclosure comes after Reuters reported in late January that the company postponed its stock market debut because the SEC was scrutinizing the company's method of recognizing revenue through its digital currency. "We have identified a material weakness in our internal control over financial reporting which resulted in our restatement of our financial statements for the years ended Decemand Decemand the nine months ended September 30, 2020," the filing said. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |