The Problem With Breathless Speculation Over Tech IPOs

Despite reports of stalls and delays, both Facebook and Groupon are evidently back on track to IPO within the next six months or so. According to a report in Thursday's New York Times, Groupon has sorted out its trouble with the Securities Exchange Commission over a leaked memo during its quiet-period and "is now aiming to go public in late October or early November." Facebook's plans are less clear, but Times sources did deny a Financial Times report that Mark Zuckerberg was delaying his company's IPO until the end of 2012. "Facebook, the social networking giant, whose potential for a public offering is the stuff of breathless speculation, has yet to nail down a plan," says The Times. "The company is still planning to go public in the first half of next year, people close to the matter said on Wednesday." This latest round of "breathless speculation" brings up a broader question about the consequences of Facebook and Groupon's false starts. Since the companies are so young, many people wonder if the sloppy IPO-planning is a symptom of disorganized leadership, and because the buzz that follows their progress is so deafening, others wonder if there's too much hype, the kind of hype that points to a bubble. What do these companies gain by going public, anyways? And what do they lose?

Read the full story at The Atlantic Wire.

Presented by

The Atlantic Wire is your authoritative guide to the news and ideas that matter most right now.

Why Principals Matter

Nadia Lopez didn't think anybody cared about her middle school. Then Humans of New York told her story to the Internet—and everything changed.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register with Disqus.

Please note that The Atlantic's account system is separate from our commenting system. To log in or register with The Atlantic, use the Sign In button at the top of every page.

blog comments powered by Disqus

Video

A History of Contraception

In the 16th century, men used linen condoms laced shut with ribbons.

Video

'A Music That Has No End'

In Spain, a flamenco guitarist hustles to make a modest living.

Video

What Fifty Shades Left Out

A straightforward guide to BDSM

More in Technology

Just In