Lindows goes for an IPO - a detailed look

Posted Apr 20, 2004 18:09 UTC (Tue) by mmarsh (subscriber, #17029)
In reply to: Lindows goes for an IPO - a detailed look by vblum
Parent article: Lindows goes for an IPO - a detailed look

I thought it was more-or-less typical that a new company will bleed a little cash while establishing itself. The IPO then comes when it looks like a single big cash infusion would put the company on the path to real and sustained profitability. I have no idea how all of this applies to Lindows right now.

While the proposed payment to Robertson might not be the best or most reassuring way to pay off that debt, it's hardly a divestment on his part. He'll likely remain the majority shareholder, and hence will have an interest in the continued success of the company. Minimizing the debts on Lindows' books by or shortly after the IPO might actually attract more investors, since any subsequent debts would be incurred by shareholder-approved actions.

As far as the name change goes, I agree that it's better for them to change their product name, which was a pretty blantant gimmick. I could, however, see this having continued repercussions for Lindows, in that potential investors might question the CEO's judgement. Since he'll still be majority owner, it's not like they can buy stock and then force him out.