Facebook’s ‘failed’ Libra Cryptocurrency is No Closer to Release
Facebook’s ‘failed’ Libra Cryptocurrency is No Closer to Release

In the booming era of blockchain, Facebook’s Libra Association markets itself as an “independent, not-for-profit, membership organization, headquartered in Geneva, Switzerland” aiming to increase access to the global financial system and services. (Libra.org). In a world where 1.7 billion adults don’t have adequate access to the global financial system, Libra’s cryptocurrency claims it has the answer. (Id.) Through distributed network governance, open internet access, and cryptography security, cryptocurrencies aim to increase accessibility to financial services. (Id.) Yet, the volatility and value fluctuation of existing cryptocurrencies has hindered their adoption by the mainstream market. (Id.)

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CryptocurrencyRace to the BottomAdriana Levandowski
An Unexpected Player Makes the Case for Sustainability

BlackRock Inc. (“BlackRock”), one of the three largest asset management firms in the United States, announced in January that sustainability will be a significant consideration in future investment decisions. The firm’s announcement is a drastic change in its investment policy that has been met with mixed support from activist groups. While there is mixed sentiment about the sincerity of BlackRock’s announcement, the firm may be laying the foundation for other investment management groups to mimic as they implement strategies for minimizing the risks of climate change in their clients’ portfolios.

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Trending TopicsRace to the BottomKaley Rickert
United Kingdom Takes Steps to Better Regulate Cryptocurrency Transactions

Governments worldwide are struggling to keep up with how to regulate new decentralized online currencies as blockchain platforms become more prominent across financial networks. (David Tweed, Bloomberg). But even though an increasing number of investors utilize cryptocurrencies, many are still confused about how to treat virtual currency for tax purposes. (Kelly Phillips, Forbes). Recently, Her Majesty’s Revenue and Customs (HMRC), the government department of the United Kingdom responsible for the collection of taxes, opened a contract to procure software to help identify when cryptocurrency is used to avoid paying taxes. (David Canellis, TNW).

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CryptocurrencyRace to the BottomThomas Ford
U.S. and China Enter Into A Two Phased Agreement

The US and China are the two largest economies in the world and over the past year they have imposed billions of dollars’ worth of tariffs on each other’s goods. So far, the US has imposed tariffs on more than $360 billion of Chinese goods forcing the Chinese to retaliate with tariffs on more than $110 billion of US products. (BBC). This post provides an overview of the most recent activities in the trade war between the U.S. and China, and an analysis of any implications these new tariffs have for the US, Chinese, and Global Economy.

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Trending TopicsRace to the BottomJordon Prince
SoftBank Unveils $9.5 Billion WeWork Rescue, Gets 80% Stake

WeWork’s biggest investor, SoftBank Group Corp., took over 80 percent of WeWork in a $9.5 billion rescue package in October following the company’s botched initial public offering (“IPO”) attempt. Concerns about the company’s losses and corporate governance forced WeWork to shelve its plans for an IPO in late September leading to the need for an influx of capital to replace what was expected to be raised by WeWork in the IPO. (Eavis and de la Merced, The New York Times). WeWork, valued at $47 billion in January 2019, is valued at the start of 2020 at less than $8 billion. (Hsiao, Top1000funds.com). This $40 billion loss in less than a year is serving as a lesson for investors in high-profile startups with valuations upwards of $1 billion (“unicorns” or “unicorn companies”), and as a warning for growth-stock companies looking to make their public market debuts. (Alpeyev, Tan, Davis and Huet, Bloomberg). This post outlines WeWork’s turbulent 2019 and briefly explores what may become a “unicorn” startup burnout case study business students will study for years to come. 

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Deals and M&ARace to the BottomKaley Rickert
Private Equity Firm Sues Alleging Dilution of its Interest through a Sham Offering

Tygon Peak Capital Management, LLC (“Tygon Peak”), a private equity firm, filed suit in Delaware Chancery Court against Voice Comm, LLC (“Voice Comm”) and its ownership group alleging breach of contract, unjust enrichment, breach of the covenant of good faith and fair dealing, deceptive trade practices, and defamation. (Verified Complaint, Tygon Peak Capital Management, LLC v. Mobile Investments Investco, LLC, No. 2019-0847 (Del. Ch. Oct 24, 2019)). The defendants in the suit include Voice Comm’s parent company, Mobile Investments Investco, LLC (“Investco”), the other firms that invested in Investco, and the individuals in charge of these investment companies who also sat on the boards of Investco and its subsidiaries. Id. Tygon Peak owns 100% of Investco’s Class A Units and 6.8% of Investco’s Class B Units and has a seat on Investco’s Board of Managers (“Investco’s Board”). Id. The suit arose after negotiations broke down over a potential buyout of Tygon Peak’s Investco stock. (Leonard, Bloomberg Law).

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Case SummariesRace to the BottomKasia Parecki