Segway Glides Towards IPO?
from the chicken-and-egg-problem dept
The Segway was one of the most hyped products of the last decade -- getting a ridiculous amount of attention before almost anyone knew what it was. For months, people guessed about this mysterious device that would change the way cities were built, according to some of the early buzz. Of course, with so much hype, it's no wonder that the actual launch of the device seemed anti-climatic. While they still get some buzz, that doesn't mean there's much of a real business there, as evidenced by the constantly rotating cast of characters who fill the executive chairs at the company -- each with a different strategy to try to build more of a business out of the buzz. Apparently, the latest CEO has his own strategy. theodp writes "Segway's new CEO tells the AP he was brought in to bring the company to a liquidity event, which could solve a chicken-and-egg problem: Segway won't be widely accepted until its price comes down, but its price can't come down until it's produced on a much larger scale." Making an effort to increase economies of scale to decrease price makes sense -- but it's not at all clear how going public actually solves that issue. Producing a lot more doesn't make any sense if there aren't going to be any buyers -- and if there really would be buyers it doesn't necessarily mean an IPO is necessary when private investors might be willing to pump in money for growth. It sounds more like a weak excuse for previous investors who want to figure out a way to get at least some return on their shares.