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The complete bearish case against investing in Snapchat’s massive IPO

on February 28, 2017

Santosh Rao, head of research at Manhattan Venture Research, echoes that sentiment. “In terms of corporate governance, I don’t like it. It’s too much power in one hand,” Rao says. He also acknowledges that companies like Facebook and Google are shifting in this direction and argues that allows the firms to remain focused on their long-term strategy. “These company founders are trying to keep control. To some extent, I don’t have a problem with that. In the case of Facebook, [Mark] Zuckerberg kept all the control and made a lot of the decisions on his own; 
it helps them make acquisitions faster, to move faster without giving up too much control. It helps growth companies pivot to new things and acquire new companies. So in that sense, it’s good. They are still in the innovative phase in their companies, in the evolution. 
I have no problem with that as long as they deliver.”

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Uber’s sex harassment scandal deepens

on February 24, 2017

Uber is valued at nearly $70 billion, and its IPO — if and when it ever comes — is being eagerly awaited by both Wall Street and Silicon Valley. Experts said the latest revelations are unlikely to derail Uber in the long term, thanks to its massive popularity and market share, despite occasional consumer backlashes.

“I think Uber will be fine in the end,” Santosh Rao, head of research at Manhattan Venture Partners, told MarketWatch’s Caitlin Huston.

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More stories of Uber’s out-of-control workplace culture emerge

on February 23, 2017

More stories of sexism, harassment and debauchery at Uber Technologies Inc. emerged Wednesday, in a New York Times report detailing the company’s aggressive corporate atmosphere. “I think Uber will be fine in the end,” Santosh Rao, head of research at Manhattan Venture Partners, told MarketWatch’s Caitlin Huston.

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Uber harassment scandal will hurt, but not in same way as #DeleteUber campaign

on February 23, 2017

Uber is facing another crisis, but experts say the impact on the ride-hailing service will be different than the recent campaign to delete the company’s app. Even as rivals offer similar services, Uber has first-mover advantage with consumers and is so ubiquitous that it is hard to hinder its growth, said Santosh Rao, head of research at Manhattan Venture Partners. “I think Uber will be fine in the end,” Rao said.

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Airbnb buys Montreal-based Luxury Retreats to bolster high-end vacation offerings

on February 16, 2017

“I like this acquisition. I think it makes sense and it’s logical” for Airbnb, said Santosh Rao, a technology specialist and head of research at New York-based merchant bank Manhattan Venture Partners. “Airbnb is just getting into the luxury side. It’s just very nascent. So I think they’re just buying growth in that category.”

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Airbnb reportedly in talks to acquire luxury rental startup

on February 10, 2017

Santosh Rao, an analyst with Manhattan Venture Partners, told the Financial Times that Luxury Retreat has estimated annual bookings of $150 million, compared to Airbnb’s $3 billion in bookings. Rao added that the deal would be positive for both margins and revenue because of the higher margins in luxury accommodation.

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Airbnb poised to buy exclusive vacation villas specialist

on February 10, 2017

Airbnb’s yearly bookings are around $3bn, while Luxury Retreat’s bookings are about $150m, according to estimates from Santosh Rao, an analyst at Manhattan Venture Partners. Airbnb has raised more than $3bn from investors who recently valued the company at $30bn; its backers include Peter Thiel’s Founders Fund, Greylock Partners, Andreessen Horowitz and Tiger Global.

Mr Rao expects that the deal will be accretive to Airbnb’s margins as well as to its revenue. “The margins for high-end [accommodation] always end up being higher,” he said. Based on his calculations, Airbnb broke even in 2016 based on earnings before interest, tax, depreciation and amortization.

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Tesla to Become the Latest American Company to Target India’s Monstrous Growth

on February 8, 2017

Santosh Rao, Head of Research at Manhattan Venture Partners, believes that Tesla’s push into India makes strategic sense. “The market opportunity is too compelling to ignore,” said Rao. “India has a growing middle class with rising disposable income. The manufacturing cost will also be relatively lower.”

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Facebook Inc (NASDAQ:FB) Joins Hands with Google (GOOGL) on Flagging Fake Articles; SC IPO on Cards

on February 6, 2017

There is more to come in social media arena as the initial-public-offering filing by Snap Inc. has spurred plenty of attention, as one of the biggest technology IPOs in years and an offering that could worth the firm at almost $25 billion. Due to its social messaging app, Snapchat, and huge valuation, the firm (SNAP), has gained comparisons to the IPOs of Facebook and Twitter.

And in its road show, Snap declared that it was the next Facebook, not Twitter, as per reported by the Wall Street Journal, but following it disclosed huge net losses, investors and experts are not so confident. “It is alarming, as people got blazed with Twitter,” Santosh Rao stated, head of research at Manhattan Venture Partners.

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IPO Market Fires Up 4 New Offerings This Week

on February 6, 2017

The big IPO news last week was Snap Inc.’s initial filing for an IPO of some $3 billion at a market value of $18.3 billion according to a note from Manhattan Venture Research. The company said it estimates 2017 sales of around $1 billion and is hoping for a valuation nearer $25 billion. It’s early days yet on this one.

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