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Initial Public Offering Made Netscape an Internet Browser Giant
from:
IPO.
Single acronym, yet with different meanings and applications.
It may stand for intellectual property ownership. It may also stand for the Instituto Portugues de Oncologia or the Portuguese Oncology Institute which is situated at the University of Porto in Portugal. It may probably refer to the Israel Philharmonic Orchestra which is one of the leading symphonic orchestra in Israel and one of the best-performing orchestra around the world.
However, when you are talking about the IPO in the world of finance, it only spells three distinctive words.
Initial public offering.
Initial public offering or referred to by its acronym IPO, is basically the first sale of a company’s common stocks to the public, which is why it is called “company that will go on public”. One of the major reasons why companies go on public is to raise additional capital that will be used to sustain their operational expenses. Although companies undergoing the IPO process must adhere to the heavy legal requirements imposed by the governing laws and authorities, IPO is considered to be an effective method in raising additional capital for a company.
Typically, an IPO process involves several investment banks that will act as the underwriters for the deal. The company will enter an agreement with a lead underwriter that will facilitate the public issuance of their common shares to the public. The issuer (or the company issuing the common shares) must draft a prospectus that will show the details of the company’s background, history, products, operations, industry environment, and other related factors.
Such prospectus will be submitted to the U.S. Securities and Exchange Commission (SEC) for approval. Once approved, the price of the common shares will be finalized, and the IPO will now be on the “free riding period” wherein the shares will be offered to the public in different ways.
In most cases, newly-formed and not well-known companies are the ones involved in the IPO process. However, there are large corporate organizations that go on public to further raise funds to sustain their growing business operation. One of which is the Netscape.
Netscape, or formerly known as the Netscape Communications Corporation, is an American-founded computer application company, which is best known for their Internet-browsing products and services. The Netscape browser was dominant before in terms of usage share. However, with the competition among different browsers, Netscape have lost their user base within that particular area. As a result, the usage share of Netscape browsers is now under 1 percent and still falling slowly.
Netscape went public for the first time in April 1994. They have filed before the Securities and Exchange Commission for an initial public offering of 3.5 million shares of common stocks to the public. After the completion of the IPO process, Netscape were able to grow faster than any other existing software company in terms of revenues. Their initial market value was now around $ 1 billion against the $200 or $300 million of other computer application companies. In addition, they have enough cash to pay for their additional expenditures.
Netscape existed as an independent company from 1994 up to 2003 before they became the subsidiary of the America On Line (AOL). However, the Netscape brand is still in use.
Although the Netscape is now a subsidiary of another large Internet-based company, it showed that through IPO, additional capital to pay for additional expenses and increased market value is a possibility.
Initial Public Offering And Income Tax News
Zuckerberg's 2012 personal income tax bill: $1.5 billion - Register
 Politico | Zuckerberg's 2012 personal income tax bill: $1.5 billion Register If all goes according to plan, Facebook founder, chairman, and CEO Mark Zuckerberg's share of the profit in his company's upcoming initial public offering will result in him facing a tax bill of around $1.5bn for 2012. What's more, the Financial Times ... Facebook IPO has California dreaming Facebook's high tax rate likely to drop Lawmakers sound caution on Facebook IPO tax revenue |
Facebook's Initial Stock Offering Will Help It Dodge Corporate Income Taxes ... - ThinkProgress
 ThinkProgress | Facebook's Initial Stock Offering Will Help It Dodge Corporate Income Taxes ... ThinkProgress But if all goes according to plan, Facebook will be able to use its initial public offering — via the stock options it gives its employees — to not only avoid paying corporate income tax for years, but to receive a $500 million refund from the ... |
Groupon's Growing Pains - Wall Street Journal
 Bloomberg | Groupon's Growing Pains Wall Street Journal In its first major test since an initial public offering in November, the Chicago-based daily deals site reported revenue more than doubled to $506.5 million in the fourth quarter, strengthened by new products, holiday sales and a rise in the rate it ... Groupon Shares Decline After Unexpected Tax-Related Fourth-Quarter Loss Why Groupon Will Never Be Great Again No, I Still Wouldn't Buy Groupon's Stock |
Lawmakers sound caution on Facebook IPO tax revenue - Pasadena Star-News
 Inc.com | Lawmakers sound caution on Facebook IPO tax revenue Pasadena Star-News "In the coming months, the state's revenue forecasts will need to be adjusted somewhat to account for the possibility of hundreds of millions of dollars of additional revenues related to the Facebook IPO," according to the LAO's overview of Gov. Facebook's Zuckerberg May Owe $2 Billion In IPO Taxes Big tax refund expected for Facebook Zuckerberg May Face $2 Billion Tax Bill |
California lawmakers eye revenue from Facebook IPO - Reuters
 Boston.com | California lawmakers eye revenue from Facebook IPO Reuters | SAN FRANCISCO (Reuters) - California lawmakers are already drawing up plans for spending revenue generated from wealth tied to selling shares in Facebook, which took its first step toward its highly anticipated initial public offering on Wednesday. Calif. lawmakers cheer Facebook IPO, see windfall Facebook chief faces tax bill of $1.5bn |
Groupon Gross Billings Growth Skids In First Quarter Post-IPO, Shares Crash ... - VC Circle
 USA TODAY | Groupon Gross Billings Growth Skids In First Quarter Post-IPO, Shares Crash ... VC Circle Groupon Inc shares slumped Wednesday as the daily deal company's first quarterly results since it went public stoked concern about limited disclosure and slowing growth. Groupon reported an unexpected fourth-quarter loss from a huge tax bill, ... Groupon disclosure, growth concerns hit stock Groupon reports surprise Q4 loss; shares slammed 13% Analysts React to Groupon's Earnings |
LinkedIn Earnings Solid, Q4 Revenue Up 105% - WebProNews
 Firstpost | LinkedIn Earnings Solid, Q4 Revenue Up 105% WebProNews Assumed preferred stock conversion. As a result of the company's initial public offering, all outstanding shares of preferred stock were automatically converted into shares of Class B common stock. Consequently, non-GAAP diluted net income per share ... LinkedIn upbeat for 2012 on members, product growth LinkedIn Q4 revenue beats estimates LinkedIn's 4Q earnings strong, revenue dou |
Apollo Fourth-Quarter Profit Falls 66% on Market Swings - BusinessWeek
 Globe and Mail | Apollo Fourth-Quarter Profit Falls 66% on Market Swings BusinessWeek Economic net income after taxes, a measure of earnings excluding some compensation costs tied to its initial public offering, declined to $302 million, 80 cents a share, from $881.8 million, or $2.52, a year earlier, New York-based Apollo said today in ... Private equity firm Apollo posts lower 4Q profit Apollo Global Management, LLC Reports Financial Results for the Fourth Quarter ... Apollo earnings fall on mark-downs |