Originally Published: Tuesday, 5 October 1999 Author: Ronny Ko
Published to: columnists/Ronny Ko Page: 1/1 - [Printable]

Linux IPO Fever

Going public is the easiest and fastest way to make and raise money. By going public, a company can gain industry recognition and capital investment to further its business plans. The recent success of Red Hat's IPO was a clear sign that investors like Linux and see a future that is not dominated by Microsoft's vision of a computer on every home and every desk....

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Going public is the easiest and fastest way to make and raise money. By going public, a company can gain industry recognition and capital investment to further its business plans. The recent success of Red Hat's IPO was a clear sign that investors like Linux and see a future that is not dominated by Microsoft's vision of a computer on every home and every desk.

The most recent company to announce plans of going public is a new and less-known company called LinuxOne. The company was founded in March and does not even have product. It is clear to me that the founders of this company are trying to make a fast buck by riding the Linux bandwagon. It will be interesting to see how many investors will buy into a vapour-company.

In its public filing, many people have noticed how similar the filing was to Red Hat's. It's also clear that they founders have no vision, and plan to emulate Red Hat's success by emulating as much of Red Hat's filing as they possibly can.

Following the fever, Cobalt Networks, a Linux-based hardware server manufacturer has already applied to become a public company, with Caldera Systems and VA Linux Systems possibly to follow.

The question is this: how much money is available for Linux and will the increasing number of companies going public have an effect on how Red Hat shares perform in the months that come?

Interesting times are ahead.

Ronny Ko is the Editor-in-Chief for 32BitsOnline Magazine, a multi-platform magazine founded on the ideas that "There's more than one way to Compute".





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