Gurley predicts boards will face fiduciary duty claims for using traditional IPOs that underprice shares.
“I think people are gonna come after boards, for fiduciary duty violations for knowingly entering into a process where you're selling a corporate asset at a massive discount.”
Gurley frames IPO underpricing as knowingly selling corporate assets at massive discount.
“for knowingly entering into a process where you're selling a corporate asset at a massive discount.”
Gurley says traditional IPOs only provide access to select group who are investment bank's biggest customers.
“It's just a select group of people that that happen to be the biggest customers of the investment bank.”
Gurley explains Didi's competitive strength internationally could separately impact Uber's valuation.
“Uber also competes with DD internationally. And so whether or not this affects DD's ability to be competitive is a different force that could impact Uber's valuation.”
Gurley argues companies in Delaware could face derivative lawsuits for not moving after the Musk compensation ruling.
“I would make the argument that every company in Delaware has to move to a different domicile because they could be sued in a future derivative lawsuit for the risk they've taken by staying in Delaware.”
Gurley says the number of US public companies is less than half the peak, calling it a big problem.
“the number of public companies that exist in The US today is less than half what the peak was. And companies just aren't going public. And I think it's a big problem.”