SmartNews said to plan December Tokyo IPO as valuation craters

What happened: SmartNews plans a December Tokyo IPO at a fraction of its prior valuation, a sign its news aggregator business has been hurt by artificial intelligence. Key numbers: Target market value about ¥50 billion ($317 million), versus a $2 billion valuation in a 2021 Series F round. It cut 40% of its US and China workforce in 2023. Why it matters: The listing highlights a mismatch between high valuations of Japan's unlisted startups and investor demand. KKR-backed SmartHR has also delayed its listing over valuation concerns.

SmartNews plans a December Tokyo IPO at a fraction of its prior valuation, a sign its news aggregator business has been hurt by artificial intelligence.

The listing highlights a mismatch between high valuations of Japan's unlisted startups and investor demand. KKR-backed SmartHR has also delayed its listing over valuation concerns.