Posts Tagged: ‘IPO’

Last year, Chris and I did a TechStuff episode about Facebook’s IPO and the controversy surrounding it. Facebook’s opening stock price during its IPO was $38 per share. In theory, a company’s stock price should reflect the value (and potential value) of that company. You take the number of shares that exist, multiply it by the share price and you’ve got a rough estimate of a company’s value. In Facebook’s case, that value amounted to a whopping $16 billion. But questions about Facebook’s real value began to pop up shortly after the IPO and that’s where we run into trouble.

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Pandora Radio launched an initial public offering (IPO) of company stock this morning, with some success. According to Wired’s Sam Gustin, the company priced the offering at $16 per share, which would value the company at about $2.6 billion. As it turned out, the stock opened at $20. From there it went up to $26, and dropped somewhat. At the end of the day when markets closed, Pandora ended up at $17.42 per share.

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News broke today that Groupon has filed for an initial public offering (IPO). The paperwork indicates that Groupon is looking for up to $750 million in this IPO. The filing reveals other interesting information: Groupon employs 7,000 people. It claims 83 million subscribers. In the first quarter of 2011, Groupon earned over $640 million in revenue. Earlier this year, Bloomberg reported that Groupon was discussing a valuation of the company with several banks — a valuation that may have been as high as $25 billion.

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