‘We Just Have to Keep Winning’: A Sonos Executive With a Colorful History Goes to War Against GoogleRead Now

Zoom Video CEO Eric Yuan on the day Zoom went public on the Nasdaq market last April. Photo by Bloomberg

Quid Pro IPO? Software Tech IPO Practice Raises Disclosure Questions

By and  |  Jan. 23, 2020 7:00 AM PST
Photo: Zoom Video CEO Eric Yuan on the day Zoom went public on the Nasdaq market last April. Photo by Bloomberg

In 2017, executives at the cloud security company Zscaler were interviewing bankers ahead of an initial public offering expected to value the company at more than $1.5 billion. During a meeting with bankers from Barclays, one of the dozen or so firms vying to underwrite the IPO, Zscaler’s chief financial officer Remo Canessa commented that he’d like the syndicate of underwriters to be made up of clients, according to a person who was in the meeting. 

The CFO didn’t quite get his wish. Zscaler’s syndicate of 11 underwriting banks ended up including four customers: Barclays, Morgan Stanley, BofA Merrill Lynch, and Deutsche Bank. Still, the four combined sold more than half the stock in the offering, securities filings show, making them some of the most important underwriters in the group. 

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The 1:1 google
‘We Just Have to Keep Winning’: A Sonos Executive With a Colorful History Goes to War Against Google
Art by Clark Miller.
A few months into his job as chief legal officer of Sonos, Eddie Lazarus was ready to wage war. When Lazarus joined the audio hardware company in late 2018, it was facing growing competition from tech giants like Amazon and Google. Both companies were selling cheap speakers capable of multiroom audio playback, a feature Sonos had pioneered on its devices more than a decade earlier. Sonos...
Latest Briefs
 
Google Invests $300M in OpenAI Rival Anthropic
Bankman-Fried’s Company Used to Buy Robinhood Shares Files for Bankruptcy
Musk Found Not Liable in ‘Funding Secured’ Tesla Trial 
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Art by Clark Miller.
The 1:1 google
‘We Just Have to Keep Winning’: A Sonos Executive With a Colorful History Goes to War Against Google
A few months into his job as chief legal officer of Sonos, Eddie Lazarus was ready to wage war. When Lazarus joined the audio hardware company in late 2018, it was facing growing competition from tech giants like Amazon and Google.
Silicon Valley's Latest Invention: The Supplement Stack
The Weekend culture ai
Silicon Valley's Latest Invention: The Supplement Stack
Greetings, and welcome to your Weekend! Today’s newsletter really ought to come with a surgeon general’s warning: “Consuming dozens of unregulated health supplements may not actually be awesome for your health.” It’s hard not to shake your head at the sheer number of nascent and untested substances that some of our tech-industry peers are swallowing.
A selection of AI-generated selfies (good ones on the left, duds on the right) of the author Zara Stone.
Market Research culture ai
Know Thy Selfie: A Journey Into the Uncanny Valley of AI-Generated Avatars
At 7 a.m. on August 22, 2022, Yaron Inger woke up to find his business irrevocably changed. The co-founder and chief technology officer of Lightricks , which develops Facetune and other popular media-editing apps, scrolled through his newsfeed, his eyes flicking from one image to another.
Art by Mike Sullivan.
Exclusive crypto
Genesis Creditors Could Miss Out on Recent Crypto Rally
Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy last month, lifting the value of customers’ crypto assets stuck in Genesis accounts.
Art by Clark Miller.
The Big Read culture
‘I’m Like a Guinea Pig—I’ll Take Anything’: An Explosion of Supplements Hits Tech’s Kitchen Counters
When Courtney Reum wakes up in his Los Angeles home, it’s time to freeze, shake and dangle upside down.
Amazon executive chairman Jeff Bezos. Art by Mike Sullivan
Exclusive e-commerce amazon
How Amazon’s Bricks-and-Mortar Dreams Hit a Wall
If Amazon’s ambitious vision for becoming a power in bricks-and-mortar retail had gone to plan, last month would have been a big milestone for the company.