Regulators Are Fed Up With Food-Delivery Fees

American consumers have been forced to eat food-delivery costs sometimes nearly as big as the meals themselves. Regulators are fed up. In addition to new laws boosting compensation and benefits for delivery drivers, restaurant protections such as pandemic-related commission caps have been proliferating at the city and state levels. Consumer protections could be next. New laws have been costly for delivery players that have been struggling to generate consistent profits lately. On its third-quarter conference call, Uber , which owns and operates Uber Eats, suggested it wouldn’t absorb all of the added costs related to the passage of Proposition 22 in […]

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Poshmark’s Stock Price More Than Doubles in Market Debut

Poshmark Inc.’s stock more than doubled in its trading debut Thursday, reflecting a soaring market for public offerings and expectations that demand for secondhand goods sold online will grow after the economy returns to more normal conditions. Shares of the online marketplace focused on used merchandise opened at $97.50, according to FactSet, above the company’s initial public offering price of $42. That better-than-targeted IPO price valued the company at more than $3 billion, up from a $1.25 billion valuation in 2019. Private companies have been looking to cash in on robust demand from investors for new listings. Companies raised more than […]

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Affirm Shares Skyrocket in Trading Debut

Shares of Affirm Holdings Inc. surged in the company’s trading debut Wednesday. The buy-now, pay-later fintech firm, trading on the Nasdaq under the symbol AFRM, jumped as high as $103 shortly after it began trading around midday, far above its initial offering price of $49. The enthusiastic reception for Affirm shares could indicate that 2021 will be similar to 2020. That was the most lucrative year on record for public offerings in terms of money raised, driven in part by the success of companies like DoorDash Inc. that have benefited during the pandemic from the stay-at-home economy. Still, extreme first-day pops […]

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WSJ News Exclusive | Sixth Street Partners Nears Deal for Majority Stake in Legends Hospitality Group

Investment firm Sixth Street Partners is nearing a deal to buy a majority stake in sports-and-entertainment events company Legends Hospitality LLC, according to people familiar with the matter. The deal, which could be announced Monday, is expected to value Legends at $1.3 billion including debt, the people said. Founded in 2008 by a group that included the National Football League’s Dallas Cowboys, Major League Baseball’s New York Yankees and the merchant bank of Goldman Sachs Group Inc., Legends partners with top sports and entertainment brands to design, plan and manage special events and live experiences. The company, which also has divisions […]

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Bed Bath & Beyond, Micron Technology, Moderna: What to Watch When the Market Opens

Here’s what we’re watching ahead of the opening bell on Thursday. —U.S. stock futures rose as investors looked past Wednesday night’s storming of Congress by a pro-Trump mob that disrupted the Senate’s confirmation of Joe Biden‘s election victory. Futures tied to the Dow Jones Industrial Average gained 0.4%, suggesting the index of blue-chip stocks will extend a rally that pushed it to a record closing high Wednesday. S&P 500 futures also rose 0.5%. Futures on the Nasdaq-100 Index gained 0.7%, suggesting that giant technology stocks may recoup some of their losses. Tech shares took a beating Wednesday when investors pushed into […]

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MGM’s Entain Bet Could Help the House Keep Winning

Bricks-and-mortar casinos are placing bigger bets on online gambling. Given the continuing headwinds from the pandemic, they may have little choice—but the wager could keep driving growth even after those cease to be a factor. The biggest hurdle might be persuading skeptical online incumbents to sell out. British gambling company Entain , which owns bookmaker Ladbrokes, said an $11 billion deal proposed by MGM Resorts —the company behind casinos such as Bellagio and Mirage—significantly undervalues the company, formerly known as GVC. It rejected an earlier bid from MGM late last year. MGM’s latest offer, which also has a limited partial-cash alternative, […]

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WSJ News Exclusive | MGM Seeks to Buy Ladbrokes Owner Entain

MGM Resorts International MGM 1.03% is seeking to buy British gaming company Entain ENT -1.56% PLC, according to people familiar with the matter, in the latest move by a casino operator to double down on the red-hot online-gambling business. MGM recently made an offer to buy the owner of the popular British gambling brand Ladbrokes, which has a market value of about $9 billion, the people said. The offer, which would have a substantial stock component, comes after an earlier, roughly $10 billion all-cash overture was rebuffed. The new bid comes with financial backing from the MGM’s largest shareholder, IAC/InterActiveCorp. IAC […]

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Lessons From a Crazy Year in Financial Markets

Here is something many investors would have found difficult to believe during March’s stomach-churning selloff: 2020 would turn out to be a stellar year for the stock market. The Dow Jones Industrial Average is at a record. The market for initial public offerings is flourishing. Just weeks ago, home-rental startup Airbnb Inc. made a stock-market debut so stunning that its chief executive was briefly left speechless on live television. These are things that would be easy to imagine in boom times. But 2020 has been anything but that for the world outside Wall Street. The cold reality is that the market’s […]

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New California Law Could Spoil Some Growth for Food-Delivery Platforms

Just how valuable has restaurant selection been to delivery platforms’ growth over the past year? We could soon find out. A California bill is set to require third-party delivery platforms to have stated agreements in place with merchants to deliver food orders starting Jan. 1. The bill will effectively end the growth-strategy platforms including DoorDash and Postmates have historically employed to rapidly augment their delivery footprints. Delivery platforms will have to remove so-called unpartnered food merchants, or those with which they don’t have a stated agreement, from their apps in California. Without an agreement, a delivery platform can list a restaurant’s […]

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Japan Plays Catch-Up in Venture Capital as Rivals Boom

TOKYO—As the world’s two biggest economies, the U.S. and China send scores of startups to the public markets—some at jaw-dropping valuations—yet Japan, at No. 3, has been lagging far behind. The Japanese government wants to kick its startup scene into higher gear, but it won’t be easy. The country’s star initial public offering in technology this year, and one of the biggest in recent years, is online marketing-tool developer Plaid Co., whose opening trade on Dec. 18 gave it a valuation of around $1.1 billion. Meanwhile, Airbnb Inc. opened this month at a valuation of $102 billion, the largest in a […]

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