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IP Uh Oh

IP Uh Oh

A Sane IPO Market Is Egg on The Face of Late Stage Investors

A piece from 2000, the good old days

An interesting detail about the recent Zynga IPO was that the company priced its shares at $10, well below the $14 a share backers like JP Morgan paid in the social gaming company’s last round of private funding.

Writing on his blog today, Fred Wilson argues that the recent public offerings for Zynga, Groupon, Pandora, LinkedIn and others have been rational. The companies  have seen some volatility, but they haven’t jumped to insane highs and then plummeted to zero.  “I was on the boards of some companies that went public in 99/00 and they were not ready,” wrote Wilson. “I learned that lesson the hard way.” Read More

IP Uh Oh

Zynga IPO Rated a ‘Buy’ by Guy Who’s Been Correct About Tech IPOs Before and Quotes Mark Cuban

Haven’t you heard? Zynga is the latest awesome(ly hyped) tech company to go for the IPO gold. The last big hyped tech IPO, you may have also heard of, it didn’t do so well. More than a few of the hyper-hyped tech IPOs from 2011 haven’t done so well, either. So if one of the guys who was naysaying the tech IPO euphoria correctly comes out and says to buy Zynga, we’d be interested to hear what they have to say.

Meet Richard Greenfield. Read More

IP Uh Oh

The Zynga Pre-IPO Alec Baldwin Effect Question: Answered, Affirmatively

What's the term IPO MANIA worth in Words With Friends scoring?

Yesterday, the world took note of a revolution brewed in the skies—or ten feet from an airport gate—when Glengarry Glen Ross actor Alec Baldwin stood up for an entire populace of belligerent, gadget-tethered humans and revolted against the oppressive goosestepping of flight attendants who want you to turn your iPad off when airplanes taxi out of runways. He did it by refusing to stop playing Zynga’s ‘Scrabble’-copycat, Words With Friends. Read More

IP Uh Oh

Mark Pincus Doesn’t Think You Deserve That Zynga Stock He Gave You

Sorry?

Mark Pincus is not having a very good holiday season. An amended S-1 filing from last week showed a drop in net income, fewer daily active users, and slower revenue growth than previous quarters.

Absent a stock price, the filing seemed to indicate Zynga’s IPO would be delayed until after Thanksgiving. But before he can dull his anxieties with tryptophan, the Wall Street Journal has another skeleton to drag out of the closet.

Apparently, Mr. Pincus has been threatening a few early employees he deemed unworthy to return the Zynga stock they were given or risk being fired and lose all their unvested stock. Read More

IP Uh Oh

Yelp Gives Its Chances of IPO-ing at More than $1 Billion Five Stars

Oh what, you wanna see my price range?

Now that Groupon tested the IPO waters and found them warm enough (stock dropped 4.8 percent, but is currently trading at $23.70), Yelp is ready to wade on in.

Earlier this week the online crowd-sourced consumer review company tapped Goldman Sachs and Citigroup as the bookrunners for its IPO. Today the Wall Street Journal reports that Yelp is planning a public offering that would value the company between $1 billion and $2 billion. Read More

IP Uh Oh

New Bill Proposed Today May Increase the 500-Shareholder Rule to 2,000. You’re Welcome, Facebook!

$ZUCK

Apparently, the time is nigh to stop complaining about the 500-shareholder rule and start legislating against it. Fortune.com’s Dan Primack reports that Senators Pat Toomey (R-Pa.) and Tom Carper (D-Del.) introduced new bill today “that would effectively eliminate a rule that many have cited as the reason Facebook may go public next year.”

Prevailing rules stipulate that after hitting 500 shareholders, private companies have to disclose significant financial data. It goes into such detail that most private companies, like Google back in 2004, opt to just go public.

Today’s legislation is a different bill than the one put forth back in June, which proposed amending the Securities Exchange Act of 1934 to accommodate 1,000 stake holders. Rather, the newer bill would increase the limit from 500 to 2,000 and exempt employees from counting towards that threshold (although accredited investors would count towards the total). Currently, employees with stock options are exempt, but actual stock received as compensation is counted.  Read More

IP Uh Oh

Groupon Off: The Juiciest Bits from Business Insider’s Massive Groupon Story

BAD KITTEH.

Groupon, Groupon, Groupon: Everyone’s talking about the original daily deals company in the leadup to their public debut on the markets. Everyone has a theory about what their company is and isn’t; what their future can be and can’t. And Business Insider—ever so often derided for their cut-and-paste journalism—did something late last night with Groupon that they sometimes tend to do: published a sprawling, sensational, and sourced piece of reporting that covers entire swaths of narratives both primary and otherwise on a hot subject. Meet “INSIDE GROUPON: The Truth About The World’s Most Controversial Company.

It doesn’t contain any groundbreaking revelations on the company. It’s not going to open them up to further points of scrutiny or single-handedly change the fate of Groupon’s IPO.

But it does offer some great insight from the inside and it  is, admittedly, an excellent read. Here are our favorite parts: Read More

IP Uh Oh

It’s Not That Groupon Wants to IPO, So Much as It Has To (Legally and Financially Speaking)

BAD KITTEH.

In case anyone was wondering why Groupon, the tech press’s favorite new punching bag, would restart its delayed road show and try to go public right now (during the biggest IPO backlog since 2000), there are a couple easy answers.

Bloomberg reports that Groupon (1) both needs cash to grow and (2) is close to the 500-shareholder threshold, at which point its required to report detailed financial information every quarter. Usually that’s the point where startups figure: Eh, might as well IPO.

Groupon, which is seeking to raise as much as $540 million, but only selling five percent equity, claims that it doesn’t need the money for at least a year and isn’t desperate for the cash. But as Bloomberg reports: Read More