Outspoken GoDaddy CEO Claims IPO Quiet Period Was Just Too Tough

from the nice-one dept

Earlier this week, GoDaddy announced it would pull the plug on its planned IPO, giving the typical excuse of poor market conditions. This seemed like a plausible reason, considering the fate of Vonage, and the general difficulty in getting unprofitable companies (like GoDaddy) to market. But now GoDaddy is offering another reason. Its founder, the outspoken Bob Parsons says he just couldn't bear to keep his mouth shut during the mandatory quiet period. Parsons said that it has been "suffocating" and that he didn't like having to suspend his weekly radio show or TV appearances. It's true, quiet periods can be tough; even Google almost got derailed during theirs. But the real reason is probably closer to what they told the SEC, that the market conditions weren't right. But saying they were doomed by the quiet period is so much more in fitting with the company's image, and now that it has no plans to go public, Parsons can say whatever the heck he wants.

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  1. identicon
    Scott Gardner, 10 Aug 2006 @ 12:40pm

    Reason for IPO

    An IPO is not always to raise cash. Take Apple as an example. They were sitting on $300 million in cash reserves *before* they went public. Frankly, Apple needed investment capital like a fish needs a bicycle.
    Instead, some companies go public so that ownership of that company actually has financial meaning. It's one thing to say "I'm the co-founder and half-owner of XYZ company", and another thing entirely to say "I own half the shares of a publicly-traded company with a market cap of $100 million dollars". In the second example, you're worth $50 million dollars. In the first example, you just have pretty business cards.

    Scott

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