Newegg.com withdraws IPO

http://www.renaissancecapital.com/ipohome/news/IT-focused-e-commerce-company-Newegg.com-withdraws-IPO-9710.html

by nathanlrivera • 15 years ago

39 38 15 years ago

renaissancecapital.com

nathanlrivera• 15 years ago

Here is the EDGAR filing: http://www.sec.gov/Archives/edgar/data/1341704/0001193125111...

palish• 15 years ago

Relevant text:

"At this time the Company has determined not to proceed with the initial public offering contemplated by the Registration Statement. The Registration Statement has not been declared effective by the Commission and the Company hereby confirms that no securities were sold in connection with the offering described in the Registration Statement. Therefore, withdrawal of the Registration Statement is consistent with the public interest and the protection of investors, as contemplated by paragraph (a) of Rule 477."

ck2• 15 years ago

I wonder what that was about.

They are only second to Amazon in customer service quality IMHO.

wanderr2• 15 years ago

And with quicker shipping. If Amazon and Newegg have something for the same price, or the difference is just a few dollars, I go with Newegg every time.

baddox2• 15 years ago

That was the case, before Amazon Prime.

zoowar• 15 years ago

That was a short bubble.

pagekalisedown• 15 years ago

They're trying to avoid getting screwed like Linkedin.

mattdeboard• 15 years ago

Have you a link to a story about this? I'd not heard anything about LinkedIn's IPO going sour. I googled but nothing except positive stories were returned.

lotusleaf19872• 15 years ago

There's a reason they say sell in May. A lot of people think in June LinkedIn is going to take a beating. But who knows really, a lot of the time it is just a self-fulfilling prophecy.

truthout3• 15 years ago

He's saying the stock doubled in its first day of trading. Meaning the shares were offered at a price. The company sold shares at that price. The same day the value of those shares doubled. So tr market is saying the shares are worth double of the IPO (initial public offering) price.

This behavior was common during the dot com bubble. IPOs doubled in price, everyone was happy. It's totally unrealistic.

Anyone who buys LinkedIn is retarded. Serious people that trade the market wouldn't touch it with a 10 foot pole. Sure you can trade this crap and make fist fulls of money in the short term. The venture capitalists got paid. Do not own this stock.

truthout3• 15 years ago

This is ridiculous. LinkedIn had benefited from computer algorithmic trading that jacked it's price to extraordinarily urealistic price to earnings ratios. p/e is a metric in which stocks are valued. How much the company is worth divided by the yearly earnings.

To say LinkedIn got screwed is to say the dot coms got screwed in 2000. Guess what? The only people that got screwed were the share holders. LinkedIn should be jumping for joy that their peice of shit company is worth anywhere near 8 billion dollars. I just feel bad for the stupid shareholders when their shares become worthless.

senthilnayagam• 15 years ago

Hope it has nothing to do with the plaintext password storage revelation , which came last week

muppetman• 15 years ago

Was it much of a story outside of tech circles? i.e. do you think the average investor would have heard about it?

It's an interesting theory anyway. I suspect as someone else has posted that it's related to the way the LinkedIn IPO went.

evandena• 15 years ago

Unless I'm missing something, the CS Rep giving him his password in clear text does not necessarily mean it was stored in clear text.

jackowayed• 15 years ago

Newegg should not be able to determine what his password is. 2-way encryption is less bad than truly storing it in cleartext, but 1-way encryption is the only acceptable way to store a password unless there's some very compelling reason that you need to be able to decrypt it. (eg. I used 2-way encryption to store people's Twitter passwords before OAuth because I needed to be able to tell Twitter their passwords, so 1-way wouldn't work.)

ori_b• 15 years ago

If you can get the cleartext of the password without any information outside of what lives on Newegg's servers, then the password is effectively stored in cleartext.

r00fus• 15 years ago

Doubtful. It is more likely they don't feel they're ready to strategically invest the capital (going IPO is to gain capital for the company mainly).

fletchowns• 15 years ago

Wasn't the plan for them to expand their business in China with the IPO?

orijing2• 15 years ago

How much of a competitive disadvantage are they at relative to Amazon due to the sales tax situation?

Speaking of which, how many people actually report and pay the use taxes on purchases from Amazon?...

mortenjorck2• 15 years ago

Illinois just added a new line to its income tax form in which it is implied "ok, you bought stuff online and didn't keep track of it because you never wanted to pay this stupid tax anyway. So here, just look up your base income on this five-line table and that's what we'll call your use tax for the year."

To my knowledge, California already does this, as well as a few other states. This leads me to believe that the ongoing battle over Internet sales tax may have found a compromise at this point in flat-fee use taxes.

ahi2• 15 years ago

I actually managed to do my taxes early this year, but I think I remember Michigan giving the option of stating how much you owe, or if you're not sure paying $50. I'm sure a lot of people just put in $0 for how much they owe. I figured it was worth $50 to get rid of the 1 in a million chance that lying came back to bite me in the ass.

orijing2• 15 years ago

A flat use tax is the equivalent of no use tax at all in terms of purchase incentives.

How does compromise address the competitive discrepancies?

chopsueyar2• 15 years ago

Maybe they fear a hostile takeover by AMZN?

ahi2• 15 years ago

I spent much of last weekend pricing out a custom build workstation and was having trouble finding a source other than newegg. Amazon is a disorganized mess when it comes to fulfilling very specific hardware needs. TigerDirect is just skeezy. Seems like they should have it made.

trafficlight3• 15 years ago

I completely agree. I don't buy parts from anywhere but Newegg unless I absolutely have to.

And I just signed up for Shoprunner.com since Newegg joined them. $79/year for 2 day shipping on most everything Newegg carries. Where's your Amazon Prime now?

rawsyntax• 15 years ago

it's the same cost?

or if you have an EDU email address it can be free

wglb• 15 years ago

I buy all my components from Tiger Direct, and have had very good luck. I order stuff regular shipping, and it is here the next day.

Newegg.com withdraws IPO

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