MicroStrategy, Incorporated: PIPE Case Solution
As just three months before, the offer comes at a tough time for the business, its stock had reached a record price of $300 per share. At that point the firm had filed a $1 billion equity offering that was seasoned. Soon afterward, the firm was compelled to restate its gains after running afoul of the U.S. Securities and Exchange Commission (SEC) for its revenue recognition practices.
In order to satisfy with the ambitious strategies of Saylor for MicroStrategy, additional funds must be got. With public-market financing sources shut off, pupils must assess what the best strategy is for the company at this moment. Pupils are requested to assess a fresh type of enterprise funding called private investments in public enterprises (PIPE). PIPEs differ from standard floating-rate convertibles in the conversion cost in many instances are only able to be corrected down. The instance contemplates both the advantages and disadvantages of these investments.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: January 07, 2002 PRODUCT #: UV0275-PDF-ENG
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