Netscape Ipo Case

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

Their chief(prenominal) competition is currently Microsoft who is already bundling their browser software along with their Windows OS, which places accelerated growth pressure on Netscape to inaugurate and create new products to bundle before Microsoft eats up too much of the market. This brings us to Netscapes need to kick up capital the pressure from Microsoft is forcing Netscape to raise the bar at a time when they are not yet profitable. button reality provides less a! ssay than pure debt financing because of the added risk brought on by future fixed expenses in the already exceedingly competitive environment. In addition, the large amounts of capital needed to descent their projected growth may be difficult to reliable from strictly private investors. Along with said difficulty, new(prenominal) private backup may come at a higher equal; in either monetary hurt or in control tactics. IPO...If you want to get a full essay, pronounce it on our website: BestEssayCheap.com

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