Article Summaries
Article Summaries
Weibo has been performing well in China the same way in which Twitter is doing across the world. It is perhaps due to this reason that the owners have decided to initiate an IPO in the US. As is expected of any company planning an IPO, Weibo has to provide the IPO filing to prospective investors (read the general public). The author clearly highlights the major details embedded within the filling in a bid to inform his readers on what each of them means.
Specifically, the author emphasizes on the risk factors directly affecting the company. This is perhaps meant to provide potential investors with heads up; just in case they were expecting an all smooth “road”. Of interest (to note) is that information that will be disseminated over the internet will be subjected to some form of censoring to ensure it meets some set of standard as stipulated by China. This could be a matter of major contention given the fact that most people value their privacy almost more than anything else. Social networking has brought a culture where individuals want to speak out their minds above everything. The natural question would then be whether it will attract as many users from other countries (while making close reference to the performance of the same company in China).
Conclusively, the major argument by Tom Gara, the author, is that investors may invest into the company but end up making slow (or no progress). With most investors being risk averse, the possibility of throwing such caution to the wind is almost negligible. Weibo may be a great Chinese company, but the effect the Chinese censors will have on its IPO is one we will just have to wait and see.
Link: http://blogs.wsj.com/corporate-intelligence/2014/03/14/one-big-threat-to-weibos-business-chinese-censors/?mod=WSJBlog&mod=WSJ_corp_intel
Quiznos Goes Bankrupt, but the Sandwiches Will Live On
Tom Gara, a writer for the Wall Street Journal, came up with an article describing how the Quiznos chain of stores had decided to sign a bankruptcy report. The beauty of the matter, to all sandwich lovers, is that sandwiches will still be available. This is a result of major creditors chipping in to save the situation. With the major lender providing a whopping $15 million, restructuring is now a reality.
This financing and restructuring plan is, however, dependent on the ruling of the US bankruptcy court. Given they are subjected to Chapter 11 (among others) of the law, Quiznos has a valid chance to renegotiate leases and also other contracts. According to the author, this will go a long way in ensuring that they have as much operating capital as they can.
In conclusion, depending on a couple factors like an affirmative response from the bankruptcy court, Quiznos could get back to their feet. Given the potential it has and also its market share, running out of business is almost out of the question. New owners are nevertheless, a great possibility.
Link: http://blogs.wsj.com/corporate-intelligence/2014/03/14/quiznos-goes-bankrupt-but-the-sandwiches-will-live-on/
References
Gara, T. (2014, March 14). One big threat to Weibo’s business: Chinese censors . Retrieved March 17, 2014, from Wall Street Journal : http://blogs.wsj.com/corporate- intelligence/2014/03/14/one-big-threat-to-weibos-business-chinese- censors/?mod=WSJBlog&mod=WSJ_corp_intel
Gara, T. (2014, March 14). Quiznos goes bankrupt, but the sandwiches will live on . Retrieved march 17, 2014, from Wall Street Journal : http://blogs.wsj.com/corporate- intelligence/2014/03/14/quiznos-goes-bankrupt-but-the-sandwiches-will-live-on/
