Groupon’s tricky S-1 math

[Editor’s note: This story is republished with permission by Rocky Agrawal. It originally ran yesterday on his blog, reDesign.]

Who gets hurt if Groupon collapses

Daily deals site Groupon is launching its IPO roadshow this week and is seeking a $10 billion valuation for the company, less than half of what was rumored when the company first filed to go public in June. That’s a big haircut.

The hottest new internet companies are growing up outside the U.S.

High-value financings for venture-backed private internet and digital media companies seem to be happening at a rapid pace. Dropbox, Tumblr, AirBnB, Foursquare, and Spotify have all raked in big fundings and attained record valuations in recent months. Meanwhile, public investors are decidedly less sanguine. The Nasdaq Composite index is flat for the year – and the average internet and digital media company is down 50% from 52-week highs.


Tudou IPO exposes yet another China risk factor: the founder’s wife

Tudou Holdings Limited, a leading online video company in China, ended its initial public offering saga this week, limping onto Nasdaq (under the symbol TUDO) at a price equal to 16 times revenues in the 12 months through March 31. That valuation is about half the 31 times revenue rival Inc. (NYSE: YOKU) received in its December 2010 initial public offering.

Xunlei IPO on Nasdaq would have US funding Chinese piracy

Chinese internet company Xunlei Limited last week announced the postponement of its initial public offering and Nasdaq listing, citing adverse stock market conditions. The company had intended to raise up to $140 million to expand what many regard as a haven for copyright infringement that would be illegal if operated inside the United States.


Zillow share price doubles, then quickly falls during IPO

Real estate listings site Zillow opened on the NASDAQ stock exchange this morning with a whopping $60 share price after its IPO was priced last night at $20 per share. But the $60 per share price fell quickly after the first trade and shares are currently trading around a more reasonable $34.

New rules for the new internet bubble

(Editor’s note: Serial entrepreneur Steve Blank is the author of Four Steps to the Epiphany. This is an edited version of a longer story that originally appeared on his blog.)


Zillow prices IPO, now has nearly $400M valuation

Online real estate company Zillow on Wednesday filed new SEC documents that declare its IPO pricing between $12 and $14 a share, which gives the company a $378 million valuation. The company intends to raise up to $55.7 million in the IPO.

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Will Zynga fare better than Pandora, Groupon in its IPO?

Zynga, the game developer behind smash hits FarmVille and CityVille, is the most profitable Web 2.0 company that has filed to go public this year. If this year’s track record with IPOs is any indication, Zynga’s IPO could easily crush every other Web 2.0 company once it makes its debut.

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Show's over: Pandora skids in second day of trading

Share prices of online radio service Pandora skidded in its second day of public trading on the New York Stock Exchange (NYSE), falling nearly 25 percent from its closing price on Wednesday. Shares are now trading at a price below the company’s initial public offering price of $16.


HomeAway prices IPO, now has $2B valuation

Vacation home rental site HomeAway on Thursday priced shares for its initial public offering between $24 and $27, which values the company at a surprisingly robust $2 billion. The company wants to raise as much as $248 million in its offering.

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Pandora shares climb in IPO

It looks like investors still have a healthy appetite for consumer Web companies. Online music service Pandora started trading on the New York Stock Exchange this morning, and as of 10:35am Eastern time, it was trading at $20.75 per share.

Facebook IPO

Facebook planning $100B IPO for early 2012?

Facebook is planning to file an initial public offering as early as October or November, according to a CNBC report. A filing at that time would most likely lead to an IPO in the first quarter of 2012, with a potential $100 billion valuation.

Pandora ups IPO price, valued nearly $2B

Online radio station Pandora increased the share price for its initial public offering today, bringing the company’s valuation to nearly $2 billion, according to a recent filing with the Securities and Exchange Commission.

Groupon CEO to shareholders: Get ready for “a bumpy ride”

You might think that group-buying sensation Groupon would have to repress its tongue-in-cheek sense of humor as it prepares for its its initial public offering — and to some extent, that’s true. But even though Groupon’s IPO filing is dominated by the usual financial numbers and corporate-speak, a little bit of the company’s mischievousness sneaks through.

LinkedIn competitor Viadeo: No regrets about IPO delay

After watching LinkedIn’s stock climb to impressive heights following its IPO today, not to mention all the subsequent talk that we’re in a new bubble that will eventually pop, you might think that the executives at professional networking company Viadeo are regretting their recent decision to postpone their own IPO. But Viadeo chief executive Dan Serfaty told me today that he’s feeling just fine.

LinkedIn IPO: You know it’s a bubble when Grandma can buy in

LinkedIn’s massive 2x pop after going public this morning reflects that everyone, including the underwriters, seriously underestimated the demand for the shares. There was a time, especially during the .com, when underwriters such as Morgan Stanley would attempt to artificially go out the door with a low price in order to create a pop, but companies going public nowadays are much more sophisticated and discerning about leaving so much money on the table.

Groupon advancing towards a $15B IPO?

Group-buying titan Groupon has taken further steps towards an initial public offering by selecting Goldman Sachs and Morgan Stanley to underwrite the offering, according to an article in the Wall Street Journal citing “people familiar with the matter.”

Government shutdown will halt IPOs

Update: Looks like this won’t happen after all. The House and Senate have passed a budget extension until next Friday, and Republicans and Democrats have agreed on the framework for the full budget.

Q1 venture-backed IPOs strongest since 2007

The initial public offering market for venture-backed companies in the first quarter was the strongest since 2007, according to a report by Thomson Reuters and the National Venture Capital Association.

See no IPOs, hear no IPOs, but they’re coming fast

While we’ve seen a pickup in initial public offerings of late, most notably in Q4 2010 prior to the holiday slowdown, many people watching the market continue to expect muted IPO market prospects relative to the 1990s. Maybe that’s not such a bad thing. The last time there was anything approaching a positive consensus was early 2000, and we know how that ended.

Angry Birds maker may go public in the coming years

Rovio just raised $42 million in venture capital funding a week ago. But the developer of the hot Angry Birds mobile game says it will likely go public in two to three years.

Maker of super-fast memory modules Fusion-io files for IPO

Fusion-io, a maker of super-fast flash memory modules, announced today that it has filed for an initial public offering. The company’s memory modules are becoming more and more important to the creation of faster and more power-efficient servers in corporate data centers.

Facebook investor Jim Breyer on LinkedIn IPO: What’s the hurry?

Jim Breyer, one of Facebook’s earliest investors through venture firm Accel Partners, just talked to Bloomberg TV about LinkedIn’s recently announced initial public offering. He said that if he were in LinkedIn’s board of directors, he would have told the company to wait a little longer:

Can there be a tech bubble without an IPO frenzy? (video)

Since 2008, the initial public offering market for tech startups in the U.S. has been pretty dead. In 2010, 42 tech companies went public, compared to 17 the year before. But that pace is slow compared to past boom years.

Privacy setting on Facebook financials to change in 2012

A document sent to potential Facebook investors suggests that the social networking company intends hold its initial public offering by mid-2012, according to reports in The Wall Street Journal and The New York Times, though there still plenty of ambiguity about Facebook’s plans.