Print 80 comment(s) - last by JKflipflop98.. on Oct 6 at 5:58 PM

Newegg finally goes public, with financial analysts expecting big things

Online retailer Newegg today announced plans to go public, filing for a $175 million IPO, according to an SEC filing.

Newegg is best known as a technology e-tailer, but has expanded of late to include other consumer electronics.  Since launching in 2001, the company has been profitable every year, with $2.1 billion in sales in 2008.  In 2007, the company saw $1.9 billion in sales, with the number expected to increase as Newegg expands its business.

The company has seen dramatic success after making changes to support small- and medium-sized businesses in the United States.  Newegg also has its sights outside the United States, with China expected to be an important step in the company's continued expansion.  Furthermore, Canada also is expected to be a big market for Newegg, with many Canadians long requesting to be able to make purchases from the site.

The company does have to deal with several issues in the immediate future, including a patent infringement lawsuit filed by Soverain Software, according to the IPO registration filing.  If Soverain is successful in getting an injunction against Newegg, the company may be forced to "stop or alter certain of our business activities."

In the future, Circuit City -- although its physical stores went bankrupt, a liquidator purchased the company's online business and keeps it running -- will lead the charge of online businesses that aim to derail Newegg.

The IPO will be handled by Citi, JP Morgan, and the Bank of America, with Newegg's largest shareholder, Insight Venture Partners, also completing another IPO earlier in the year.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: mixed feelings
By KoolAidMan1 on 9/28/2009 7:02:48 PM , Rating: 2
Hopefully they will do as Amazon has done and actually improved in terms of customer service and prices as they have grown to be more successful, same with other big retailers like Costco.

Actually, one place where I find Amazon to be superior is that all return shipping fees on defective merchandise is covered by them, while with Newegg all return shipping is covered by the customer. Well, that and the whole "no 10% sales tax in CA" thing is another big positive for Amazon.

Either way, hopefully Newegg continues to get better. I personally think that their raw selection is their biggest advantage; for high tech goods nobody can touch the amount of stuff that they carry. Their prices are good but I can also find comparable or better prices from Amazon or MWave (and with Amazon I skip 10% sales tax and get unlimited 2-day shipping for $80 a year). I think Newegg actually has a little ways to go to match Amazon or other retailers in terms of customer service, their website can keep getting better, etc etc. Hopefully this IPO doesn't get in the way of them doing that.

RE: mixed feelings
By Mojo the Monkey on 9/29/2009 2:34:13 PM , Rating: 2
All hail costco for their ridiculously good customer service, no-questions return policy (takes the place of a warranty most times, unbelievable) and excellent pay for their employees (considering the work). One of the few major corps I like.

"We basically took a look at this situation and said, this is bullshit." -- Newegg Chief Legal Officer Lee Cheng's take on patent troll Soverain
Related Articles

Most Popular ArticlesSmartphone Screen Protectors – What To Look For
September 21, 2016, 9:33 AM
UN Meeting to Tackle Antimicrobial Resistance
September 21, 2016, 9:52 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
Update: Problem-Free Galaxy Note7s CPSC Approved
September 22, 2016, 5:30 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki