Here’s what we have for you today:
• Stripe raising more
• Teaming up mobile
• First Re’public Bank
Stripe fundraising again
Payment company: Stripe raised over $6.5 billion in funding to value the company at $50 billion.
Why? As reported, Stripe wants to use the proceeds to “provide liquidity to current and former employees and address employee withholding tax obligations related to equity awards, resulting in the retirement of Stripe shares that will offset the issuance of new shares to Series I investors.”
Current round: New investors in the round include GIC, Goldman Sachs Asset and Wealth Management and Temasek.
T-Mobile buying spree
Acquisition: T-Mobile reached a deal to acquire Ka’ena Corporation, the parent company to prepaid wireless brands Mint Mobile and Ultra Mobile, as well as wireless wholesaler Plum, T-Mobile expects to close the deal later this year.
Amount: The maximum of $1.35 billion in a combination of 39% cash and 61% stock. The final purchase price will be based on Mint’s performance during certain periods before and after the closing.
Reason: The move indicates that T-Mobile is looking to boost its prepaid offerings.
The Republic Bank for which it stands
Current status: First Republic Bank’s credit ratings were downgraded to junk status at S&P Global and Fitch.
Previous records: First Republic’s latest 10-K filing indicated 68% of its roughly $176 billion in deposits at the end of 2022 was uninsurable by the FDIC.
Current comparison: Fitch added that First Republic’s investment portfolio is relatively concentrated in long-dated municipal securities, affording it less flexibility. Overall, about 61% of the book value of the portfolio is comprised municipal securities, which is high compared with industry standards.