You have probably encountered before Zillow, either by searching for an address, a home to sell, or in order to obtain an assessment for your home computer. Zillow is a database of real estate online, and soon enough the company hopes to transform the last dot com boom in a spectacular IPO.
While Zillow has control almost complete on requested real estate online, not yet profitable company. Last year, a weak real estate market and low by advertisers adspend mean that Zillow lost money against income of only $ 30 million.
Zillow founders are not research the next dotcom of several billion dollars, although. Instead, they seek you pulling down $ 52 million in an IPO to take advantage of the company and to prepare for a long journey to profitability. The entrepreneurs behind the dot com, is a logical time. investors have an insatiable appitite for everything that ends with a point com Just ask the media application.
One thing I love about Zillow Pit is that the founders have too much control. Even after raising a massive $ 90 million in private, founders of Zillow markets maintains 90% of the vote. After the introduction on the stock market, Rich Barton and Lloyd Frink will own share with 10 times the power to vote the common shares, which makes their business, their ball game and every decision their decision.
Ultimately, I think that this company collapses. Founders have much too much of the company, and traditionally founding have not been good for public crash. Remember MSFT for Yahoo offer to almost twice the pre-offer price? Yep, the founder killed the deal off. Then you have Google, who played well enough for the past few years, but is that recently that a founder, Larry Page, took control of the company once more. Wall Street likes experienced CEO.
That said, I am not suggesting that this is the next hot stock. Between its inability to generate profits and its exposure to the real estate sector, I am not all that interested in buying. In fact, it may be best short sale of the world.
Stocks dot com, IPO, zillow
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