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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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RE: mixed feelings
By erple2 on 9/29/2009 11:41:56 AM , Rating: 2
The only rule I know of is that the federal government isn't allowed to double dip for any given taxpayer. State taxes can (and do) more or less whatever they want with their tax codes.


RE: mixed feelings
By ChristopherO on 9/29/2009 1:54:20 PM , Rating: 3
You're forgetting there is a federal gas tax, which is based on income you've already paid taxes on. Anyone can double-dip in any way they want. That's why VAT is so creepy. A new way to triple-dip without the consumer knowing, since the vendor pays the tax on *your* behalf.

I think withholding should be outlawed. Force everyone to send their taxes in every month... You do that, and there would be rioting in the streets over punitive taxation. It's amazing how a government can totally hose a person when they're unaware of it.


RE: mixed feelings
By afkrotch on 9/30/2009 5:35:32 AM , Rating: 2
Tax is all kinds of crazy.

Business A sells items gains revenue. Their revenue is taxed.
Part of the revenue is given to employees as income. It is taxed.
Employee buys goods/services with their income. They are taxed.

At least that's how I see it going on. Maybe the revenue isn't taxed and only profit is taxed.


RE: mixed feelings
By lightfoot on 9/30/2009 2:44:20 PM , Rating: 2
Only profit is taxed for businesses in the US, but they then spend that profit either in dividends to share holders (which is taxed again as capital gains) or they use it to invest in their company (which is taxed when they buy improvements or new equipment.)

Due to the tax laws of this country, the biggest competitive advantage a company can get is to be operating under bankrupcy protection. It's practically a business model in the airline industry.


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