bernama Netscape Communication Corporation. Kehadiran Netscape ternyata mendapat respon yang sangat baik dari pasar. Kemampuan Netscape dalam inovasi membawa “Netscape Navigator” menjadi peramban web terkenal dan paling banyak digunakan pada era 1990-an. Tingkat pertumbuhan Netscape pada tahun 1995 cukup signifikan, revenue Netscape per Juni 1995 meningkat 23,89% dari revenue yang diperoleh per Desember 1995. Kendati Netscape belum mampu menghasilkan profit, namun perkembangan Netscape bagus dan
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Initial Public Offering Executive summary Netscape Communications Corporation was one of the big players in the dot-com era and information technology boom of the late 1990's and contributed in making the Internet and World Wide Web known to common people. On August 9, 1995, Netscape went through the initial public offering (IPO) process. Dramatically, on August 8, the day before the IPO, Netscape's lead IPO underwriters recommended to the Netscape board to increase the initial offering price
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1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? Marc Andreessen, along with the other founders of Mosaic, accomplished what other Internet providers before failed to do: they created a Web browser that did not require the user to have expertise in HTML coding. Mosaic’s user-friendly click-and-point interface allowed for a wider customer base. After purchasing
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the exclusive use of B. OUYANG Harvard Business School 9-296-088 Rev. May 16, 1997 Netscape's Initial Public Offering August 8, 1995 had taken an unexpected turn for Netscape Communications Corporation’s board of directors. Earlier that morning, the day before the company’s scheduled initial public offering (IPO), Netscape’s lead underwriters proposed to the board a 100% increase in the original offering price from $14 to $28 per share. This recommendation came in response to the remarkable
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Harvard Business School 9-296-088 rP os t Rev. May 16, 1997 Netscape's Initial Public Offering op yo August 8, 1995 had taken an unexpected turn for Netscape Communications Corporation’s board of directors. Earlier that morning, the day before the company’s scheduled initial public offering (IPO), Netscape’s lead underwriters proposed to the board a 100% increase in the original offering price from $14 to $28 per share. This recommendation came in response to the remarkable
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Methodology The method used to analyse this case was to determine a value for Netscape Communications Corporation as a company. The net present value (NPV) method was used to estimate the firm's value in two parts. First, pro forma statements were used to estimate future yearly cash flows and then these cash flows were discounted to the present day. Second, a terminal value for Netscape was estimated using a terminal growth rate and discounted to the present. The total NPV was the sum of these
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NETSCAPE QUESTIONS 1. Why are investors excited about Netscape? What is Netscape’s business model? What must Netscape accomplish if it is going to be successful in the long run? What are the risks Netscape faces? 2. What/who have been the past sources of capital for Netscape and how much capital did they provide? 3. What is the ownership structure at the time of the IPO (who are the primary owners)? Why do the ownership shares not correspond to the initial investments (the ratio of initial
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Netscape’s Initial Public Offering Executive Summary Netscape Communications Corporation was founded in 1994 to provide client, server, and integrated applications software for the internet and other Internet Protocol (IP) networks. The company found early success capturing the browser market by offering its Netscape Navigator client product for free with the goal of generating revenue on the back end by selling server software to companies that wanted marketing access to these potential customers
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* Question I * Why has Netscape been successful to date? What is its strategy? How risky is its current competitive situation? * * Answer I * Success reasons; * •First Movers advantage; * • Introduced “click-and-point” browser * • Introduced the concept of “Web Surfing” * •Worked on both sides of the market; * Browser for Clients, E-commerce application and service for companies * •Working in growing industry * * Strategy; * •Give
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high-tech bubble was laid in late 1995, when Netscape went public, raising approximately $ 2 billion in its IPO and making Jim Clark the first internet billionaire. Not only was that figure dramatic, the offering broke new ground in the sense that Netscape had no earnings. In the past, P/E ratios for new companies may have been unrealistically high, but at least earnings existed. Netscape was selling only promises. Optimists pointed out at the time that Netscape had 85% of he browser market, apparently
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