In 1998, a pivotal year for the international economy, companies that had their ipo in 1998,many businesses held initial public offerings (IPOs). While some of these businesses went on to become household brands in the tech and finance sectors, others never quite made it. In this piece, we’ll have a deeper look at a few of the 1998 IPO success stories.
It’s Google (now Alphabet).
In 1998, while still graduate students at Stanford, Larry Page and Sergey Brin launched Google. It took six years from the company’s inception on August 19, 2004 for the IPO to occur. At $85 per share, the offering of 19,605,052 shares brought in $1.67 billion for the corporation. Google is now a division of Alphabet Inc., one of the world’s largest and most successful corporations.
eBay
Pierre Omidyar created eBay in 1995 as an online auction house for unique and vintage goods. On September 24, 1998, the company released its first public offering. eBay raised $63 million via the sale of 3.5 million shares at $18 each. With over 185 million active buyers and 20 million sellers, eBay is now one of the largest online marketplaces in the world.
Amazon
Jeff Bezos started Amazon in 1994 as an electronic book retailer. On May 15, 1997, the company held its first public offering. With the sale of 3 million shares for $18 each, Amazon was able to bring in $54 million. In 1998, Amazon had a market worth of over $19 billion, making it one of the largest companies in the world in its field.
Black Hat
Bob Young established Red Hat in 1993 to distribute free and open-source software. On August 11, 1999, the business held its first public offering. With the sale of 6 million shares at $14 each, Red Hat was able to collect $84 million. The enterprise open-source solutions pioneer Red Hat is now an IBM company.
Formerly known as Yahoo! Sports’ Broadcast.com
Mark Cuban and Todd Wagner created Broadcast.com in 1995 to serve as a medium for broadcasting audio and video over the internet. On July 17, 1998, the firm went public for the first time. At $18 per share, Broadcast.com was able to raise $50 million from investors. After paying $5.7 billion for Broadcast.com in 1999, Yahoo! incorporated its technologies into Yahoo! Sports.
In addition to These 1998 IPO Companies
Many additional companies also had IPOs in 1998, in addition to those already mentioned. Some further well-known cases are as follows:
MP3.com
Michael Robertson started MP3.com in 1997 so people could listen to music online. On July 21, 1999, the company held its first public offering. MP3.com raised $344 million through an IPO of 12.3 million shares at $28 each. The company was forced to close in 2003 after being sued for copyright violations by major record labels.
The Lycos search engine and portal was established in 1994 by Michael Loren Mauldin. The company held a secondary offering on December 17, 1998, ten years after its IPO on April 2, 1996. With an IPO price of $38 per share, companies that had their ipo in 1998,Lycos was able to collect $304 million. Terra Networks paid $12.5 billion to acquire Lycos in 2000.
WebMD
As a provider of digital health resources, Jeff Arnold and Jim Clark established WebMD in 1996. On July 27, 1999, the company held its first public offering. At $17 per share, WebMD was able to raise $59.5 million through an initial public offering. Internet Brands now owns one of the most popular online health resource sites, WebMD.
iVillage
Candice Carpenter created iVillage in 1995 to meet the demand for women-specific programming and a supportive online community. On March 19, 1999, the company released its initial public offering to the market. iVillage raised $84 million by selling 3.5 million shares at $24 each. NBCUniversal spent $600 million on a 2006 purchase of iVillage.
MPower Telecomms
Rolla P. Huff started the telecommunications company MPower Communications in 1997. On March 3, 1999, the company held its first public offering. At $18 per share, MPower Communications was able to raise $90 million from an initial public offering. After declaring bankruptcy in 2003, the company was acquired by TelePacific Communications.
Takeaways from the ’98 Initial Public Offerings
Investors and business owners alike might learn from the IPOs of 1998. Notable insights include the following:
The Importance of Timing
The timing of your public debut is critical. Many of the companies that went public in 1998 did so during the peak of the dot-com boom, when their valuations were artificially high and could not be maintained. As a result, several of these businesses suffered heavy losses, and others even went out of business entirely. Entrepreneurs and investors alike need to keep an eye on the market to know when it’s a good time to go public.
Invention Is Essential
Companies like Amazon and Google have found great success because to the originality of their goods and services. Both firms were instrumental in the development of new markets and the disruption of existing ones. If a startup wants to go public, its founders should concentrate on making useful products and services.
Get used to the Idea of Change
In a field as dynamic as technology, businesses that can’t roll with the punches often find themselves falling behind the competition. Companies that went public in 1998, such as AOL and Yahoo, lost their preeminence in the sector because they were unable to adapt to the rapidly evolving online environment. Entrepreneurs need to be flexible and aware of emerging trends and technologies so that they may adapt their enterprises accordingly.
Investors need to do their homework.
Before investing in any company, but especially one that is going public, a prudent investor will conduct thorough research. Amazon and Google are just two of the many companies that have found tremendous success after going public in 1998. Before investing, potential buyers should investigate the company’s financials, management, and competitors.
The 1998 Initial Public Offerings and Their Effect on the Technology Sector
Both the tech sector and the overall economy were profoundly influenced by the IPOs of 1998. The industry has been altered in several ways as a result of these IPOs.
Growth of Online Business
Online shopping has become increasingly popular because to the achievements of companies like Amazon and eBay. These businesses shook up the retail industry by opening up new opportunities for online purchasing. E-commerce is a booming multibillion dollar sector now.
Search Engines’ Sudden Rise to Popularity
Search engines like Google and Yahoo both went public in 1998. These businesses ushered in a new era of ease and efficiency in online research and quickly rose to prominence as some of the most popular websites in the world. Search engines have become an integral feature of the web and an important source of income for websites through paid placement of advertisements.
The Expansion of Web-Based Marketing
The initial public offerings in 1998 also helped propel online advertising forward. Startups like Yahoo and AOL were instrumental in developing the digital advertising industry. Online advertising has grown to become a multibillion dollar industry.
Data and Analytics: A Crucial Tool
The initial public offerings (IPOs) of 1998 also brought attention to the value of data and analytics in the IT sector. Data and analytics were used by companies like Amazon and Google to guide business decisions and enhance their offerings.companies that had their ipo in 1998,Today’s businesses can’t function without data and analytics to better understand their customers and streamline their processes.
Impact of 1998 Initial Public Offerings
More than two decades after the IPOs of 1998, its impact may be seen all around the world. The technology industry is being shaped in numerous ways by these IPOs, some of which are listed below.
A New Wave of Business Owners
A new wave of entrepreneurs has been sparked by the achievements of internet giants like Amazon, Google, and eBay. These businesspeople are dedicated to developing cutting-edge goods and services that include cutting-edge technologies like AI and blockchain. Some of the most ground-breaking and game-changing businesses of today can be found in the technology sector.
Why Digital Evolution Is Crucial
The initial public offerings (IPOs) of 1998 also brought attention to the significance of digital transformation for companies of all types and sizes. Those businesses that failed to embrace digital transformation and keep up with the rapidly evolving internet were quickly left in the dust. If they want to survive in today’s global market, companies must prioritize digital transformation.
The Impact of Technology on Modern Life
Questions about technology’s place in society were also brought to light by the IPOs of 1998. While the internet has made many things easier to do, it has also introduced new problems like safeguarding one’s personal information while surfing the web. Today’s tech firms are pondering and attempting to address these issues through the development of novel policies and tools.
The 1998 Initial Public Offerings and What We Learned
There were successes and disasters among 1998’s initial public offerings. TheGlobe.com and Broadcast.com, two companies that went public in 1998 but later collapsed, are two examples. Some takeaways from these setbacks are as follows:
The Value of a Long-Term Business Strategy
The demise of TheGlobe.com and Broadcast.com shows the value of a long-term business strategy. There was a lot of excitement surrounding their IPOs, but these companies were unable to turn that enthusiasm into long-term success. Entrepreneurs and investors must prioritize creating sustainable enterprises that benefit their target markets over the long haul.
Overvaluation and Its Consequences
High valuations for numerous firms marked the IPOs of 1998; some of these proved to be unsustainable. In the years following their initial public offerings, expensive companies generally struggled because they failed to live up to investors’ lofty expectations. Business owners and financiers need to assess company valuations critically and factor in the possibility of overvaluation.
The Value of Careful Research
The lessons to be learned from the demise of companies like TheGlobe.com and Broadcast.com by entrepreneurs and investors are clear. Before investing, it’s important to do in-depth due diligence on a company by learning as much as possible about its business plan, finances, and management team. Before putting money into something, this can help to highlight any problems or threats that may arise.
Conclusion
The initial public offerings (IPOs) of 1998 marked a watershed event in the development of the information technology sector and the world economy. These IPOs demonstrated the significance of data and analytics in the IT sector, and altered the ways in which we shop, research, and see advertisements online. Although there were obstacles and setbacks, companies that had their ipo in 1998,the journey provided invaluable learning opportunities. Both successful and unsuccessful initial public offerings (IPOs) in 1998 can teach entrepreneurs and investors valuable lessons about the need of innovation, strategic planning, flexibility, and due diligence. They may help ensure the tech sector’s long-term health by incorporating these insights into their own operations and investments.