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Case Study: A Short-Seller Crashes the Party

Harvard Business Review

Half a dozen companies worldwide are licensed to manufacture the machines and pods and sell them to retailers and distributors, paying royalties to Terranola on each sale. With the company’s share price sinking and its cost of capital rising, those deals might have to be put on hold. Terranola had been moving forward with A.J.’s

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The Real Reasons Companies Are So Focused on the Short Term

Harvard Business Review

Investors punish companies with a short-term orientation by applying higher discount rates to them, which increases the cost of capital for those companies. In contrast, companies with a long-term orientation are rewarded with a lower cost of capital, which allows them to afford more innovation—a virtuous cycle.

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Why Traditional M&A Is Becoming Less Important

Harvard Business Review

Discovery, the South African insurer, has formed strategic alliances with leading insurers around the world to license its Vitality platform—a quick, low-cost way to gain access to new markets. Discovery also gets access to all the data from these users, allowing it to improve Vitality.