Facebook is not the only tech company to have suffered embarrassment after going public—there have been a few just since 2011. Here’s a rundown of the most prominent:
IPO: November 2011. The daily deal Web site attracts consumers by offering deals on everything from restaurants to travel getaways to household gadgets. Hiccup: Groupon’s CEO Andrew Mason broke quiet period rules and became less known as a capable business leader and more known as the guy who makes videos of himself doing yoga in his underwear. Financials: Groupon reached a share price peak of $31, but is selling at $11.94 (as of May 24, 2012).
IPO: December 2011. Makes some of the most popular online games on the planet, including Words With Friends and FarmVille. Hiccup: The company’s link to Facebook has hurt, thanks to Facebook’s IPO disappointment. Financials: Zynga failed to meet its goal of raising $1 billion at an opening price of $10 a share. While it did peak at over $14 in March, it hovers at $7 (as of May 24, 2012).
Company: Demand Media
IPO: January 2011. Demand Media is a “content farm,” a company that owns many sites serving content that is tailored to meet the trends that are popular in Google search. Hiccup: The fact that Demand Media is a content farm. In Feb. 2011, Google unleashed Panda, intending to put such farms out of business (see "Mitigate Google’s Search Update Pain With Web Site Housecleaning"). Financials: When Panda was rolled out in April 2011, Demand Media started paying the price. Shares slid below the IPO price of $17 and went into a free fall, reaching a low of $5.47 in October 2011. The shares are traded at just over $9 (as of May 24, 2012).
PR News subscribers can read more about PR strategies behind IPOs in the article: "Zuck Soup: Investor Relations Tips To Avoid a Facebook-Style IPO"
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