Friday, March 30, 2012

Avaya Delays IPO to Avoid Competing With Facebook, Others

Facebook, that $100 billion dollar gorilla having an IPO (Initial Public Offering) in a couple of months, is effecting other company’s IPOs now. Other companies are looking to delay their IPO’s.

Officials with Avaya, a networking, and communications vendor are worried about a lukewarm response if it launches its $1 billion IPO around the same time as Facebook. Avaya executives may wait until later this year or 2013 before its initial public offering. They don’t want to be lost in the wake of more anticipated IPOs this year from companies such as Facebook and Palo Alto Networks.

Facebook came out valued at $102.8 billion after its final stock auction on the secondary market as March ended. That’s more than $7 billion beyond what the company was valued at the start of Friday, with its stock price climbing from $41 to $44.10 a share. Facebook’s IPO should be in early May.

No official word on how this will affect Palo Alto Network’s $250 million IPO. Estimated valuation of the IPO, $1.5 billion. More on their IPO at

Other companies still talking about an IPO – Avast, as previously written about. Workday, which makes HR software, and ServiceNow, which makes technology management software. and Yes, there is a hyphen in the name.

An unfortunate side effect of Facebook stopping its selling of shares on secondary markets is that the online private equity market SecondMarket will lay off 30 of its 130 employees, according to CNET. SecondMarket has risen to prominence as a venue for buying and selling stocks for private companies, such as Facebook, Twitter, and Zynga.

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