Wednesday, September 11, 2019

Peloton plans to raise as much as $1.3 billion in an IPO that would double its valuation to $8 billion - Business Insider

Peloton plans to raise as much as $1.3 billion in an IPO that would double its valuation to $8 billion - Business Insider


Peloton plans to raise as much as $1.3 billion in an IPO that would double its valuation to $8 billion - Business Insider

Posted: 10 Sep 2019 02:42 PM PDT

Peloton, the buzzy maker of expensive internet-connected stationary bikes and treadmills, is sprinting towards an IPO that would award it a rich, $8 billion valuation — double what the money-losing company was valued at just one year ago.

The offering, expected in the coming weeks, would allow Peloton to raise as much as $1.3 billion, according to its latest S-1 document, filed with the SEC on Tuesday.

Peloton's ambitious IPO plans come at a time when another high-profile company — office sharing company WeWork — has faced brutal scrutiny after launching its IPO process and has reportedly had to slash the price it expects its shares to fetch.

The two New York-based companies have a lot of similarities, including controversial capital structures that concentrate the voting control among insiders as well as spiraling losses. Peloton has posted a net loss every year since its founding in 2012, though its $539 million in cumulative red ink is significantly below the nearly $2 billion that WeWork lost in just the last year alone.

Peloton plans to sell 40 million shares of its Class A stock to public investors, priced somewhere between $26 a share and $29 a share. The company said the underwriters of the IPO would have the right to purchase an additional 6 million Class A shares.

The IPO would value Peloton somewhere between $7 billion and $8 billion, depending on where the shares price. That's a significant step up from Peloton's last valuation in the private markets in 2018, when venture investors pegged its worth at $4 billion.

According to Bloomberg, the company and its bankers could kick off the roadshow on Wednesday to pitch the offering to investors.

A big raise for CEO John Foley

Peloton also disclosed that it had entered into a new employment agreement with founder and CEO John Foley on Monday, doubling his annual salary from $500,000 to $1 million. Foley will also be eligible for annual bonus equal to up to 100% of his $1 million salary.

After the IPO, Foley will have 6% voting power at the company, based on his 15 million shares of Class B stock, which have 20 votes per share. Existing Peloton investors Tiger Global Management will control 19.6% of the voting power after the IPO, while True Ventures will have 11.9% voting power.

Public market investors who buy Class A shares in the IPO will be entitled to one vote per share.

Founded in New York in 2012, Peloton sells $2,000 internet-connected stationary bikes, as well as pricey treadmills. Customers also pay anywhere between $19 and $40 month for access to specially produced live exercise classes. The company describes itself as both a media company and a global technology platform.

Peloton boasts that its "churn rate," the portion of subscribers who cancel service, is extremely low. But according to customer-retention experts that Business Insider has spoken to, Peloton's reported churn metrics are significantly understated.

Peloton, which lost roughly $246 million in fiscal 2019 despite fast growing revenue, plans to trade on the Nasdaq exchange under the "PTON" ticker.

Here are the Australian prices, specs and release dates for the 3 new Apple iPhones - Business Insider Australia

Posted: 10 Sep 2019 07:01 PM PDT

iPhone 11

Along with the iPhone Pro and and Pro Max, Apple just officially announced a more budget-friendly 2019 device — the iPhone 11.

Here are the key specs you can expect from the iPhone 11.

  • iOS 13
  • A13 Bionic chip CPU
  • 6.1-inch all-screen LCD Multi‑Touch display with IPS technology
  • 1792 x 828 pixel resolution at 326 ppi
  • 64GB/128GB/256GB storage (no word on the RAM as Apple doesn't disclose this)
  • Dual rear camera: 12MP Wide (ƒ/1.8 aperture) 12MP Ultra Wide (ƒ/2.4 aperture) and 12MP (ƒ/2.2 aperture) front facing camera.
  • 4K video recording
  • Face ID
  • Battery lasts 1 hour longer than iPhone XR (battery mAH also isn't disclosed by Apple)
  • 150.9 mm x 75.7 mm x 8.3 mm, 194g
  • IP68 water resistance
  • Black, white, yellow, purple, green and red colour options

Despite being cheaper (and $30 less expensive than the XR at launch) the entry-level iPhone will still cost you.

The 64GB comes in at $1,199, the 128GB at $1,279 and the 256GB at $1,449.

The iPhone 11 will be available for pre-order from September 13 and will ship on September 20.

iPhone 11 Pro

After months of speculation and some cheeky rumours, the iPhone 11 is now official.

Once again there are three models, with the iPhone 11 Pro being the middle of the pack.

Here are the key specs you can expect from the iPhone 11 Pro:

  • iOS 13
  • A13 Bionic chip CPU
  • 5.8-inch all‑screen OLED Multi‑Touch display
  • 2436 x 1125‑pixel resolution at 458 ppi
  • 64/256/512 GB storage (no word on RAM as Apple doesn't disclose this)
  • Triple rear cameras – 12MP ultra wide (ƒ/2.4 aperture), 12MP wide (ƒ/1.8 aperture) and 12MP telephoto (ƒ/2.0). 12MP (ƒ/2.2 aperture) front-facing camera
  • 4K video recording
  • Face ID
  • Battery lasts up to 4 hours longer than the iPhone XS (Apple doesn't disclosed the battery size)
  • 144 mm x 71.44 mm x 8.11 mm, 188 grams
  • Gold, space grey, silver and midnight green colour options

The 64GB comes in at $1,749, the 256GB and $1,999 and the 512GB at $2,349.

The iPhone Pro will be available for pre-order from September 13 and will ship on September 20.

iPhone 11 Pro Max

The big daddy of iPhones this year is named iPhone Pro Max.

Here are the key specs you can expect from the iPhone 11 Pro:

  • iOS 13 OS
  • A13 Bionic chip CPU
  • 6.5-inch all‑screen OLED Multi‑Touch display
  • 2688‑by‑1242-pixel resolution at 458 ppi
  • 64/256/512 GB storage (no word on RAM as Apple doesn't disclose this)
  • Triple rear cameras – 12MP ultra wide (ƒ/2.4 aperture), 12MP wide (ƒ/1.8 aperture) and 12MP telephoto (ƒ/2.0). 12MP (ƒ/2.2 aperture) front-facing camera
  • 4K video recording
  • Face ID
  • Battery lasts up to 4 hours longer than the iPhone XS (Apple doesn't disclosed the battery size)
  • 158 mm x 77.8 mm x 8.1 mm, 226 grams
  • Gold, space grey, silver and midnight green colour options

The 64GB comes in at $1,899, the 256GB and $2,149 and the 512GB will be a truly jaw-dropping $2,499.

The iPhone Pro Max will be available for pre-order from September 13 and will ship on September 20.

READ MORE: Here's everything that happened at Apple's huge iPhone 11 launch event

This article was first published by Gizmodo Australia. Read the originals here, here and here.

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Uber has fired more than 400 product and engineering employees in its second major round of layoffs this year - Business Insider

Posted: 10 Sep 2019 12:48 PM PDT

Uber fired 435 employees from its product and engineering teams on Tuesday in its second major round of layoffs this year.

Some 170 people have departed the company's product team, with another 265 engineers leaving as well, an Uber representative confirmed to Business Insider. TechCrunch first reported the news.

In a statement, an Uber representative said the latest layoffs were another bid to find efficiencies in a now decade-old company and remain agile in a competitive field.

"Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility," the representative said.

"While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world."

Tuesday's layoffs follow a hiring freeze in some departments in the United States as Uber seeks to cut costs and become profitable to appease anxious investors. That hiring freeze has since been lifted, the representative confirmed.

Most of the layoffs were in the United States, TechCrunch reported, with another 15% in Asia and Europe. The California employment development department told Business Insider there was no WARN notice, a form that large companies generally have to file for large layoff events, filed by Uber this week, potentially signalling that many layoffs occurred outside of the state in other offices.

Read more: Uber marketing employees describe a 'bloodbath' when the company laid off 400 workers

Earlier in August, nervous engineers told Business Insider they feared they could be next. Other cost-cutting measures have included nixing the traditional balloons that employees receive on their work anniversaries and asking employees to be conscious about their travel expenses.

Among the cost-cutting efforts, however, are new investments that will expand Uber's presence well beyond its Silicon Valley roots. The company this week announced a $200 million investment in a new Chicago office to house a growing freight team, as well as a new office in Dallas to house sales and human resources employees.

Shares of Uber rose some 3.3% in trading Tuesday but remain more than 20% below initial trading prices following the company's massive IPO earlier this year.

Are you an affected Uber employee? We want to hear from you. Get in touch with this reporter at grapier@businessinsider.com. Secure contact methods are available here. We can keep you anonymous.

Here's Uber's full statement regarding Tuesday's layoffs:

Our CEO has asked everyone on our management team a simple but important question: if we started from scratch, would we design our organizations as they stand today? After careful consideration, our Engineering and Product leaders concluded the answer to this question in many respects was no. Previously, to meet the demands of a hyper-growth startup, we hired rapidly and in a decentralized way.

While this worked for Uber in the past, now that we have over 27,000 full-time employees in cities around the world, we need to shift how we design our organizations: lean, exceptionally high-performing teams, with clear mandates and the ability to execute faster than our competitors.

Today, we're making some changes to get us back on track, which include reducing the size of some teams to ensure we are staffed appropriately against our top priorities. These were incredibly difficult calls as it means some of our employees no longer have a role, specifically around 170 people in our Product group and 265 people in Engineering, which is roughly 8 percent of those two orgs.

Our hope with these changes is to reset and improve how we work day to day—ruthlessly prioritizing, and always holding ourselves accountable to a high bar of performance and agility. While certainly painful in the moment, especially for those directly affected, we believe that this will result in a much stronger technical organization, which going forward will continue to hire some of the very best talent around the world.

More Uber news:

Elon Musk said he wants to buy The Onion after his satirical startup shut down earlier this year - Business Insider

Posted: 10 Sep 2019 04:11 PM PDT

Elon Musk tweeted on Tuesday that he's interested in buying The Onion.

"I'd love to," Musk said when asked if he was purchasing the publication.

G/O Media, which owns The Onion, did not immediately respond to a request for comment.

The Daily Beast reported in 2018 that Musk considered buying The Onion in 2014 and hired several former staff members for a satirical startup, Thud, which folded in May after Musk stopped funding it. Rather than publish content on a single website, Thud created satirical projects in a variety of formats, including fake products and services.

Read more: Jeff Bezos, Elon Musk, Sergey Brin, and Marissa Mayer reportedly attended an elite private dinner with Jeffrey Epstein just 2 years after he served a prison sentence for soliciting sex from a 14-year-old girl

But Musk became concerned about how Thud's projects might reflect on him after a tumultuous 2018 that featured a lawsuit from the Securities and Exchange commission over tweets about taking Tesla private and an interview with Joe Rogan in which Musk was filmed smoking marijuana, The Verge reported in in March.

Musk sometimes tweets links to Onion articles and has emailed the publication's writers and editors about their work, according to The Daily Beast's report.

Are you a current or former Tesla employee? Do you have an opinion about what it's like to work there? Contact this reporter at mmatousek@businessinsider.com.

California passes legislation to treat contract workers as employees - Business Insider

Posted: 10 Sep 2019 10:19 PM PDT

California's State Senate on Tuesday approved a landmark bill that would reclassify contractors for companies like Uber and Lyft as employees.

The Assembly Bill 5 passed in a 29-11 vote, according to The New York Times, and would apply to companies that use apps to manage their goods and services. It now heads to the State Assembly, where it's expected to pass, and it could land on Gov. Gavin Newsom's desk to be signed into law before the State Legislature goes into recess on Friday.

Newsom has indicated support for the move and said tech companies and other employers are eroding worker's basic protections like "minimum wage, paid sick days, and health insurance benefits."

"Working people have lost their bargaining power," he wrote in an op-ed piece published on Labor Day in The Sacramento Bee.

"Employers shirk responsibility to safety net programs like workers' compensation and unemployment insurance. Taxpayers are left to foot the bill."

The landmark move could affect over 1 million workers in California.

Read more: Uber and Lyft drivers explain why they are striking

According to the Business Insider transportation reporter Graham Rapier, the move could put in place a three-part test that would determine a worker's status as an employee or independent contractor.

Lorena Gonzalez, the California assemblywoman who proposed the bill in 2018, said on Twitter that the move would "stop the misclassification of nearly a million" California workers so they would be entitled to employment benefits.

The bill's passing comes after years of debate on how to better manage the so-called gig economy in which people have shifted their employment toward contract work.

Several companies that rely on contract workers, including Uber, Lyft, and the delivery service DoorDash, have pledged $30 million for a ballot initiative that would exempt themselves from the bill should it become law, The New York Times reported last month.

Gonzalez has said she does not predict a successful compromise with the companies.

"Just pay your damn workers!" she wrote on Twitter on Thursday.

Lyft and Uber did not immediately respond to a request for comment from Business Insider.

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