Description: It’s one of the more widely anticipated Initial Public Offerings (IPO) of 2018: the IPO for cloud storage company Dropbox. Going public does appear to have changed the valuation of Dropbox. Whereas Dropbox was valued at $10 billion in a round of private funding 4 years ago, it is closer to $7.5 billion in this planned IPO. Perhaps the venture capital folks were more optimistic about tech companies then than the public markets are now.
Date: March 12, 2018
1) Are you or any of your classmates Dropbox users? Do you use the free service only or are you paying for additional cloud storage?
2) What could be the reasons for the big drop in valuation from $10 billion to $7.5 billion?
3) Where can you read about IPOs in Wiley’s Financial Accounting: Tools for Business Decision Making?