Robinhood seeks a $35 billion valuation in its IPO

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Robinhood CEO Vlad Tenev.
Credit…Brendan Mcdermid/Reuters

Robinhood announced the expected price range for its IPO on Monday, bringing its popular stock trading app one step closer to trading the markets.

In an updated prospectus, Robinhood said it plans to sell its shares for between $38 and $42 each. At the midpoint of this range, it will increase by $2.2 billion and be worth approximately $33 billion; eventually, it would be worth about $35 billion.

The announcement will officially kick off the last chapter of Robinhood’s long road to go public: a roadshow on which the company will build potential investors on itself. It will begin trading on the Nasdaq market by the end of next week.

This is breaking news. Check back for updates.

Bill Ackman in 2018.  He said the
Credit…Krista Schlueter for The New York Times

billionaire investor Bill Ackman said it was monday withdrew from a plan Using its massive SPAC to buy a stake in the world’s largest record label, Universal Music Group, after the Securities and Exchange Commission expressed concerns about the complex transaction.

Under the proposed deal, Mr. Ackman’s special purpose buyout, or SPAC, would buy a 10 percent stake in Universal Music, the company behind Taylor Swift, Lil Wayne and Lady Gaga, valuing the company at more than $40 billion.

But the deal would be complicated, and the SEC was concerned about whether it was a SPAC deal. These blank check companies, which use public-market capital to invest in a private company and go public in the process, have attracted a lot of investor interest over the past year – and increased regulatory scrutiny.

In a letter to investors, Mr. Ackman said the team at investment firm Pershing Capital had not changed the agency’s mind on the matter. multi-layered agreement. Investors in SPAC, known as Pershing Capital Tontine Holdings, also appeared cautious: Its shares had lost about a fifth of their value since the deal was announced.

We underestimated the reaction some of our shareholders will have to adapt to the complexity and nature of the transaction,” wrote Mr. Ackman.

The deal required Pershing Square Tontine to invest $4 billion in a 10 percent stake in Universal Music, which has already been offered to the public by its parent company, Vivendi. This would leave $1.5 billion in the investment vehicle, which would be transferred to a new public buyout fund that wanted to make another deal. Existing investors in Pershing Square Tontine would receive a financial instrument that entitles them to purchase another deal instrument seeking its own takeover target.

While Mr. Ackman’s SPAC is backing out of the Universal Music deal, Mr. Ackman isn’t – his hedge fund will buy the stake outright.

Pershing Square Tontine now has 18 months to find and close a new deal unless shareholders give it more time, and Mr. Ackman said, “Our next business combination will be structured as a traditional SPAC merger.”

A Saudi Aramco oil refinery in Saudi Arabia.  An agreement reached by countries in OPEC Plus on Sunday could ease the pressure on gas prices.
Credit…Ahmed Jadallah/Reuters

Major oil producing countries have agreed to start pumping more oil from next month. Stanley Reed reports in The New York Times.

The agreement reached on Sunday by countries in a group known as OPEC Plus could help ease pressure on gas prices and inflation as economies worldwide recover after the pandemic lockdown.

Gasoline prices in the United States are rising steadily, and the average price of a gallon of regular gasoline in the United States is currently $3.17, according to the AAA. A year ago, gasoline cost an average of $2.18 a gallon, as pandemic quarantines kept people close to home. And high gas prices contribute to inflation, an important measure of which Fastest climb in 13 years In June.

Under the agreement announced on Sunday, OPEC Plus, a group of 23 countries led by Saudi Arabia and including Russia, will increase production by 400,000 barrels per day each month from August. This will add about 2 percent to the world supply by the end of the year. The group accounts for roughly 40 percent of the world’s crude oil.

Treasury Secretary Janet Yellen questioned the Trump administration's tariffs on $360 billion worth of Chinese imports.
Credit…Erin Scott for The New York Times

Treasury Secretary Janet L. Yellen cast doubt on the merits of the U.S.-China trade deal, arguing that it has failed to resolve the most pressing disputes between the world’s two largest economies and warned that remaining tariffs remain in effect. It hurt American consumers.

Ms Yellen’s comments in an interview with The New York Times last week came seven months before the Biden administration had a comprehensive review of America’s economic relationship with China. Write Alan Rappeport and Keith Bradsher of The Times. The review should answer the fundamental question of what to do about the deal that former President Donald J. Trump signed in early 2020, which includes China’s commitments to purchase American products and reform trade practices.

The remaining tariffs on $360 billion of Chinese imports hang in the balance, and the Biden administration has said little about the fate of the deal. President Biden did not take action to roll back the tariffs, but Ms Yellen suggested they were not helping the economy.

“Tariffs are taxes on consumers, in some cases it seems to me that what we did hurt American consumers, and the type of deal the previous administration negotiated didn’t address many aspects of the core issues we had with China,” he said.

However, given the rising tensions between the two countries on other issues, it may be difficult to reach any new agreement. Biden administration warns US businesses in Hong Kong On Friday, about the possibility of electronic surveillance and the risks of doing business there, including handing over customer data to the authorities.

Chinese authorities welcome any unilateral American move Removing tariffs according to two people involved in China policy. But China is not willing to withhold large industry subsidies in exchange for a tariff deal, they said.

Academic experts in China share the government’s skepticism that any quick deal can be achieved.

“Even if we get back to the negotiating table, it will be difficult to reach an agreement,” said George Yu, a trade economist at Renmin University in Beijing.

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