Netscape’s Initial Public offering Case Memo

Netscape’s Initial Public Offering Case Memo

Question 1

Netscape is a successful company until today and investors are excited about Netscape’s IPO. Netscape is the first company introduced “click-and-point” browser and the concept of “Web Surfing”. As the first company introduced these products brings the company advantage as industry leaders. Also the company works for browsers for clients and e-commerce application and service for companies. Working for both clients and companies brings the big benefits to the company. The company’s strategy is: Give away today, make money tomorrow.” They gave the browser for free, and made money on the server side. What’s more, the company dominates and sets the standards and builds ecology. The challenge company faces is how to maintain their customers. Since the competitors like Microsoft and AOL also interested in the browsers business and it is easy for these companies to entry and reduce the Netscape’s market share.

Question 2

Netscape already had investors like Angel Investor, Adobe and five other companies as Corporate Investors, as well as Venture Capitalist Firm. The company can seek for private equity firms and Institutional Investors.

Question 3

Based on the case, at the time of IPO, Clark, Kleiner Perkins, and the group of media companies owned the largest stakes of Netscape’s equity at 24%,11%, and 11%, respectively. The company’s president and CEO, James Barksdale, held shares amounting to 10% of total equity. Investors are given differences contributions to the company. And the company wants to keep CEO’s interest to the company, so the portion to the CEO is a little more.

Question 4

• The company can do merger and acquisition.