Professional Documents
Culture Documents
Netscape Communication
By : Divya Pritwani
Roll : 10DCP-008
Netscape Communications Corporation
Founded in April 1994
Business – Comprehensive line of client, server, and
integrated applications software for communications
and commerce on the internet and private Internet
Protocol (IP) networks
Financial Highlight – Losses of $4.3 million on total
revenues worth $16.6 million during the first two
quarters
Entrance in the Internet Market (December
1994)
It entered through its flagship browser, Netscape
Navigator
Netscape’s Strengths at this time –
1. Original Mosaic Code – by paying $2.4 million
2. Jim Clark’s Management Experience
3. $3 Million in Seed Money
4. Mark Andreessen’s Technical Expertise – creator of
Mosaic
Challenges at this time –
1. It had to set a new industry standard – immediate
concern
2. It had to make money
Competitors and Market Leadership
Netscape – Market leader in the Internet Browser
market with a 75 % market share by mid 1995
Nearest Competitors
1. Spyglass – owner of Mosaic
2. Microsoft – Windows
3. AOL and Prodigy – transformation from online
platform to internet platform (market)
Objective of an IPO
Increasing Competition
Fund expected future growth – Investment in R&D
To stockpile cash reserves for potential acquisitions
To gain visibility and credibility within the industry
To sustain in this dynamic and nascent market
The IPO
The Investment bankers and Underwriters
determined the price @ $14 per share for the
public issue of 3.5 million shares