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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.



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Not good move
By p05esto on 9/29/2009 10:57:36 AM , Rating: 2
NewEgg's prices are not so great anymore - sometimes yes, but often there are better deals out there. NewEgg also doesn't always stock a lot of variety of products depending on what you are looking for. They are spread too thin in my opinion.

The IPO will be bad for this company as they will instead focus on making shareholders happy and do more worrying about share price than customers.

These companies should not try and grow like this...they'll lose their strong base of followers. Look at Google, they are now just another big corporation seeking profits by any means possible. Nothing special about that company any longer now that they are so large and mainstream. Screw em.




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