We were thinking about some of the most famous IPOs in recent history after hearing about Uber's upcoming historic IPO. Goldwin.associates always finds these to be interesting reads, providing insights into the formation and strategies of the world's largest corporations.
Few people are aware that Alibaba was the largest IPO in US history. Given that it is not a company based in the United States, this is an especially interesting piece of trivia. “We are incorporated in the Cayman Islands and conduct the majority of our operations in China,” according to Alibaba. This is why they filed an F-1 rather than an S-1.
Most of you have a Visa card in your wallet. Many of your parents felt the same way (in fact, they list ‘Established and Long-Standing Customer Relationships' as one of their top competitive advantages). It's incredible to think that they only went public in 2008. This is why they are the second largest initial public offering (IPO) in US history. This prospectus explains how the credit card authorization, clearing, and settlement processes work. This procedure is a pillar of modern commerce.
How many of you recall a serious debate about whether Facebook could effectively monetize on mobile? This risk factor encapsulates everything. “Growth in use of Facebook through our mobile products, where we currently do not display ads, as a substitute for use on personal computers may have a negative impact on our revenue and financial results;”
I know what you're thinking: GM IPOed for more than Google, Amazon, and Netflix combined? Yes, but this IPO was essentially General Motors re-listing following the downturn. Still, $15.8 billion in Escalades is a lot of Escalades.
“We face significant competition from Microsoft and Yahoo,” according to the first risk listed. I'd say they handled that risk admirably.
If you invested $1,000 in Amazon at the time of its initial public offering, it would be worth more than $1.2 million today. That is absolutely incredible. In Amazon's S-1 filing, there isn't a single mention of the words "cloud," "devices," "robotics," or "world dominance." Don't believe me on the part about world dominance? Simply repeat after me, "Alexa, who is the world's wealthiest person?" If you don't hear back, I'll rest my case.
Netflix went public when it was just an online DVD rental service. It's worth noting that there isn't a single mention of Netflix as a video streaming service. Reading the document today, it's hard to believe that the following risk was identified:
“BECAUSE OUR BUSINESS IS ACCESSIBLE VIA THE INTERNET, WE WILL LOSE SUBSCRIBERS IF THE INTERNET INFRASTRUCTURE IS NOT DEVELOPED OR MAINTAINED.”
According to the filing, “we are extremely reliant on the services of Elon Musk, our Chief Executive Officer.” Although there is no mention of his Twitter account, it is very accurate.
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