Netscape Ipo Case

08 Fall 08 Fall NETSCAPE IPO discipline NETSCAPE IPO CASE Introduction In evaluating the IPO Case for Netscape, many an(prenominal) issues lead to be analyzed; including Netscapes long-term strategy, its securities industry position, and the current investor opinion of the company. Furthermore, we consumeed to evaluate the capital ineluctably of Netscape going send on that would help fuel process in a extremely competitive business segment. The decision needed to be do on whether or not Netscape should respect a $28/share IPO price as opposed to the go price of $12-14. Given Netscapes growth and expense assumptions, it arse be concluded, based on DCF presents, that Netscape would conduct to achieve an yearly growth rate of 39% to prune a $28/share offering. Market Overview and Capital Needs Currently, Netscape is the market draw in providing a feature rich UI induce for the go internet market; however, their current business model is profitl ess because they are giving that parcel away in hopes of cornering the market and creating an ecosystem based around the software an ecosystem that will be profitable.

Their main competition is currently Microsoft who is already bundling their browser software along with their Windows OS, which places accelerated growth pressure on Netscape to innovate and create new products to bundle before Microsoft eats up too much of the market. This brings us to Netscapes need to impose capital the pressure from Microsoft is forcing Netscape to raise the bar at a time when they are not yet profitable. button public provides less assay than pure debt financing because of the added risk brou ght on by future fixed expenses in the alrea! dy highly competitive environment. In addition, the large amounts of capital needed to neckcloth their projected growth may be difficult to see to it from strictly private investors. Along with said difficulty, new(prenominal) private livelihood may come at a higher embody; in either monetary hurt or in control tactics. IPO...If you want to get a full essay, roam it on our website: OrderEssay.net

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