Tuesday, May 16, 2017

Today In Artisanal: Etsy is Up 22% (ETSY)

From the WSJ's MoneyBeat blog:

Etsy Is Soaring After Private-Equity Firms Swoop In
Shares of Etsy are soaring Tuesday in the wake of the news late Monday that two private-equity firms have taken sizable stakes in the company and may push for a sale.

TPG Group Holdings revealed a 4.3% stake, while Dragoneer Investment Group said it now holds a 3.7% position in the Brooklyn-based online handmade-and-vintage goods marketplace. In separate regulatory filings, both said they’ve asked Etsy “to engage in discussions regarding strategic alternatives.” That’s commonly the language used to describe an effort to explore a potential sale or merger.

In response, Etsy Chief Executive Josh Silverman said in a statement that the company is “reviewing our strategic and operational plans” while Etsy Chairman Fred Wilson said the board will “carefully consider all options to enhance shareholder value.”

Etsy shares rose as much as 17% in the first minutes of trading to $13.30, on pace for its highest close in three months.

Both Mr. Silverman and Mr. Wilson are new to their roles. Etsy announced that Mr. Silverman would be taking over CEO duties on May 2, after reporting a first-quarter loss and what it described as “a challenging February.” Mr. Silverman replaced Chad Dickerson, who had led the company for the previous six years.

Mr. Dickerson also stepped down as chairman, and Mr. Wilson, already a board member, stepped into the role....MORE
The stock is at $13.89 up 2.57 (+22.70%)
The IPO priced at $16 back in April 2015 so it is still a bit underwater but is suddenly interesting, I mean beyond the ongoing availability of witches curses at the platform, despite the ban.

Signposts: "Etsy Pivots From Crunchy Hipster To Gordon Gekko In One Afternoon" (ETSY)
Etsy Drops 7.77% On News It's Still Etsy (ETSY)

We actually have quite a bit on this one including the older, never-to-be-topped DealBreaker headline:
"Etsy’s Stock Is A Découpage of Market Schadenfreude" (ETSY)