For 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
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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’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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Browser programs, specifically Netscape, threatened this barrier, by allowing software developers to create software that could run using the browser software as a platform for the program. Therefore, software could be created that could still be used with Microsoft Windows, but would not have to be. Microsoft recognized this development as a threat to its operating system monopoly. Initially Microsoft attempted to divide the market with Netscape, but Netscape refused. To defend its operating
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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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manufactures, licenses, and supports a wide range of software products for computing devices. In the mid 1990’s, Microsoft held the monopoly in the production of Operating Systems (OS) for personal computers (PC). When their monopoly was threatened by Netscape, MS began bundling the Internet Explorer (IE) web browser with Windows, using cross-promotional deals with internet service providers (ISP), and prevented PC makers from customizing the opening screen showing Microsoft. These actions, which some
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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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that had a familiar C/C++ style of notation. JavaScript is not related to Java. It was originally developed in Netscape, by Brendan Eich. Battling with Microsoft over the Internet, Netscape considered their client- server solution as a distributed OS, running a portable version of Sun Microsystems' Java. Because Java was a competitor of C++ and aimed at professional programmers, Netscape also wanted a lightweight interpreted language that would complement Java by appealing to nonprofessional
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The Microsoft Antitrust Case* by Nicholas Economides** Revised April 2, 2001 Abstract This paper analyzes the law and economics of United States v. Microsoft, a landmark case of antitrust intervention in network industries. The United States Department of Justice and 19 States sued Microsoft alleging (i) that it monopolized the market for operating systems of personal computers and took anti-competitive actions to illegally maintain its monopoly; (ii) that it attempted to monopolize the market for
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1989: Tim Berners-Lee invents the Web with HTML as its publishing language The World Wide Web began life in the place where you would least expect it: at CERN, the European Laboratory for Particle Physics in Geneva, Switzerland. CERN is a meeting place for physicists from all over the world, where highly abstract and conceptual thinkers engage in the contemplation of complex atomic phenomena that occur on a minuscule scale in time and space. This is a surprising place indeed for the beginnings
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