Sign up to receive 5 free days of our daily summary for tech news.

Apple

Shutterfly Offers Snapshot of Public Company Peril

There’s little debate that for small companies, being public can be a pain in the neck. The costs of complying with regulatory requirements are high; it can be tough for very small companies to attract Wall Street research and a lot of investors shy away from small stocks out of concern that trading isn’t liquid enough. That’s why there are so few of them, particularly in tech where alternative sources of capital are plentiful.

There’s another big risk in being public, of course: the possibility of tangling with an activist investor. That’s a risk for both big and small companies in tech. A case study of one such situation is playing out right now. And unlike in past corporate soap operas, such as Carl Icahn’s pursuit of Apple, the activist in this situation has some decent arguments and might prevail. If so, it would serve as an object lesson for others in Silicon Valley.

What Is The Information?

Notes bb3aa5069205d702dda37fc71dc6f1c59df2310c4379304e9f1199f052af4884

Exclusive Articles

We broke it first. Receive original reporting you won't read anywhere else from the largest newsroom in tech.

Notebook b5103017ee163370a1667c9ce59ab0ef023875a17888105d26c185cadf31bb69

Daily news analysis

Every weeknight, we'll send you our reporters’ views on the day’s top tech news—distilled into one email.

Conference calls c9e664e8b96ee347d3e92b8309938f268422b9db98cfabca5c826fbb75054b23

Conference calls

Get access to our reporters and other top executives with monthly deep-dive calls into topics like startups and autonomous vehicles.

Events 499acedd16cffc41445edd76bfd302b2836c2a27419890f17130a6b10e2aa3df

Special Events

For no extra fee, get access to more than a dozen events yearly, from intimate dinners to larger gatherings with marquee speakers.

What else is included in my subscription?

Become a contributor

Share your views and find other subscribers by completing your profile. You’ll be listed in our contributor directory.

Slack community

Discuss topics and current events with our subscriber-only Slack group and share news about your company with other subscribers.

Annual Subscriber only benefits:

Org Charts

Access the only collection of tech company org charts. Our expanding database includes companies like Amazon, Snap, and Uber.

Crypto Newsletter

Our experts investigate the latest in the crypto world to keep you in-the-know about the movements of digital currencies.

Stay up to date on Silicon Valley

Sign up for Jessica Lessin’s (The Information’s CEO & Founder) free Saturday newsletter and also receive a complimentary week of our daily afternoon tech commentary email.

Already a subscriber? Log in here

Recent Articles

Amazon Google Apple

Alexa, Is Voice Still the Next Big Thing After Mobile?

By Priya Anand

Apple

Watching Tim Cook at Sun Valley

By Jessica E. Lessin

Asia Apple

Inside Apple Factory Thefts: Secret Tunnels, Hidden Crawl Spaces

By Wayne Ma

The company says that it “became acutely concerned about the ability to retain Mr. Housenbold and consequently his management team, given the increased risk that other companies would attempt to hire him.”