StubHub IPO, 23andMe faces bankruptcy and activist sues Phillips 66 - Shareholder Activism Weekly | 03.26.25
StubHub announces IPO, 23andMe files for bankruptcy, activist investor brings a suit against Phillips 66 and more
THREE BIG THINGS
StubHub files for IPO: The online ticketing company, StubHub, filed with the SEC to go public on the New York Stock Exchange under the ticker symbol “STUB” on Friday. In its prospectus, the company said it had a net loss of $2.8 million on revenue of $1.77 billion for 2024. The IPO market has been in a lull since 2022 but shows signs of heating up, as other companies including Klarna and Hinge Health both filed for IPO this year. - CNBC, Annie Palmer and Ari Levy, 3.21.25
23andMe bankruptcy: The genetic data company once valued at $6 billion has filed for bankruptcy after the company had burned through $1 billion and laid off more than half of its staff. Anne Wojcicki, the company’s former CEO, wants to buy the assets but despite her supervoting shares her bids to buy back the company were rejected by two board of directors. - Wall Street Journal, Rolfe Winkler, 3.25.25
Activist investor sues Phillips 66: Activist investor Elliott Investment Management has filed a lawsuit against Phillips 66 and its board of directors to require four board seats be up for election at the company’s next annual shareholder meeting. Elliott, which recently nominated seven directors after disclosing a $2.5 billion stake, argues that Phillips 66’s plan to have only two seats up for election in 2025—while keeping five each for 2026 and 2027—violates the company’s governance rules on equalizing director classes. Elliott has said it will withdraw the lawsuit if Phillips 66 agrees to put at least four seats up for election. The activist investor is also pushing for broader operational changes, including a potential sale or spinoff of the company’s midstream business. - Wall Street Journal, Sabela Ojea, 3.25.25
THE LEDGER
Dollar Tree to sell for $1 Billion: Dollar Tree has agreed to a sale of its Family Dollar business to two private-equity investors, Brigade Capital Management and Macellum Capital Management, for roughly $1 billion. - Wall Street Journal, Lauren Thomas, 3.26.25
Kroger countersues Albertsons: Kroger filed a countersuit against Albertsons on Tuesday in the ongoing legal battle between the companies following the end of their proposed $25 billion merger in December. Kroger’s counterclaim aims to recover damages from Albertsons for the investment it made to obtain regulatory approval for the merger. - Reuters, 3.25.25
Boeing to face trial over 737 Max: The federal judge overseeing the criminal case against Boeing has ordered a trial, increasing the odds that the company will have to plead guilty or defend against a charge it already said it committed. Boeing had attempted to withdraw from an earlier agreement to plead guilty for deceiving regulators before two deadly crashes of 737 MAX jets. Boeing and the Justice Department were expected to propose changes to the settlement by April 11, but the judge in the case scrapped that deadline and ordered the two parties to appear for trial on June 23. - Wall Street Journal, Dave Michaels, 3.25.25
Lyft under activist scrutiny: Engine Capital has taken a stake in Lyft and is pushing for a strategic review of the ride-hailing app. The activist investor, which has about a 1% stake in the company, has been engaging with Lyft management in recent weeks to express concerns about the company’s stock price, strategic positioning and corporate governance. - Bloomberg, Crystal Tse and Ryan Gould, 3.25.25
GameStop invests in bitcoin: GameStop announced Tuesday that its board has unanimously approved a plan to buy bitcoin with its corporate cash. The company’s stock jumped 17% in premarket trading Wednesday following the announcement. GameStop’s foray into cryptocurrencies marks the latest effort by CEO Ryan Cohen to revive the struggling brick-and-mortar business. - CNBC, Yun Li, 3.25.25
J&J U.S. Investment: Johnson & Johnson announced it is increasing its US-based manufacturing, research & development and technology investments by $55 billion over the next four year. The move comes as multiple pharmaceutical companies identify alternatives to the Trump administration’s tariffs plans. - Reuters, Satija and Patrick Wingrove, 3.21.25
CoreWeave aims to raise $2.7 billion: CoreWeave, a provider of cloud-based Nvidia processors, said in a filing on Thursday that it plans to raise up to $2.7 billion in its upcoming initial public offering. The company, which supplies computing power to OpenAI, currently has 32 data centers that house more than 250,000 Nvidia CPUs. - CNBC, Ari Levy, 3.20.25
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