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Corsair Postpones IPO, Waits For Better Times

By - Source: Tom's Hardware US | B 22 comments

Has the botched Facebook IPO scared off Corsair from going public?

The timing of Corsair's announcement that current market conditions equity market conditions are too "weak" to justify an IPO may be just coincidence, but it is certainly interesting. Facebook's stock appears to have landed at $32 per share, more than 20 percent down from what mortal investors had to pay when the stock became available for trading last week. The hype surrounding Facebook's IPO and the subsequent crash on the floor of reality will have investors looking at upcoming IPO's with much greater scrutiny.

Corsair co-founder and CEO Andy Paul commented briefly on the decision to pull back and said that Corsair's "business is growing, and is generating increasing profitability and cash flow." He added: "We have decided that we will re-launch when equity market conditions are more favorable. While we do intend to expand our capital base through public capital markets, our existing capital structure and balance sheet provides sufficient capital to enable continued investment in our brand strength, products and people.”

Corsair did not indicate when it might consider to file for an IPO. The company was founded in 1994, employs 383 people and has annual revenues of about $326 million.

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Top Comments
  • 15 Hide
    burnley14 , May 24, 2012 9:54 PM
    Corsair only employs 383 people? Whoa.
Other Comments
  • 15 Hide
    burnley14 , May 24, 2012 9:54 PM
    Corsair only employs 383 people? Whoa.
  • 5 Hide
    Shin-san , May 24, 2012 9:54 PM
    Quite smart. I wonder if the Facebook IPO brought down the entire tech sector
  • Display all 22 comments.
  • 6 Hide
    aevm , May 24, 2012 9:56 PM
    Everybody keeps saying that Facebook's IPO was a failure (botched, crash, etc.)... And yet, the insiders received $16 billion for about 16% of a company that is worth a lot less than $100 billion. As far as they are concerned, the IPO was a massive success.

    Corsair will probably file for an IPO after the US elections. because the stock market hates the uncertainty. I'll buy some stock that day, just because I've got a bunch of Corsair products and they all work :) 
  • 9 Hide
    nevilence , May 24, 2012 10:04 PM
    Corsair sells a real purpose built useful product, facebook sells status updates and hopeless causes, I'm pretty sure Corsair would be a lot more successful than Zuckerburgs failure (or successful failure depending on how ya look at it)
  • 3 Hide
    may1 , May 24, 2012 10:27 PM
    Corsair is a good company. They have been producing solid products for customers. Last thing I want to see is this company being ruined by bankers and what not who only see companies such as these as a source of cash to satisfy their greed.
  • 3 Hide
    RealBeast , May 24, 2012 10:33 PM
    Way to go Facebook, Zuck brought down the whole tech IPO world with what was obviously a failure as an investment to start with -- sorry buy the revenues are not and probably will never be there to make this a Google.

    The securities fraud case sounds pretty solid too. :)  Oh, I so wanted to short Facebook at $38.
  • 3 Hide
    kronos_cornelius , May 24, 2012 10:44 PM
    Corsair is great company. If investor did their homework instead of behaving like a school of fish, Cosair would have no problem going public.
  • 4 Hide
    Anonymous , May 24, 2012 10:48 PM
    I blame Facebook. How dare you stop one of my favorite PC parts company from doing what they want!
  • 0 Hide
    freggo , May 25, 2012 12:14 AM
    Don't blame Facebook, blame the greedy morons who bought their overvalued stock at $38 !
  • 5 Hide
    blazorthon , May 25, 2012 12:54 AM
    freggoDon't blame Facebook, blame the greedy morons who bought their overvalued stock at $38 !


    Why can't we blame both Facebook and the morons?
  • 3 Hide
    DRosencraft , May 25, 2012 1:25 AM
    Whatever happened to common sense in the market? Or common sense in capitalism? Why is it that as soon as anyone throws out an idea and claims it's the essence of capitalism it suddenly becomes taboo to point out the fallacy of their claim?

    I ask this because there was a time when the idea behind a public offering of a company on the stock market was done solely because you need the cash flow to build your business. It was an option afforded to companies who had leveraged as much private funding as they could and need more investment to help grow their business. Facebook had plenty of money. Very little of the money they made from their IPO, their $16B, seems to be actually targeted towards in any way doing something Facebook couldn't do before. In fact it seems more like they're trying to find ways to build themselves to justify the IPO. They had tons of cash already, so their IPO at the very least was flawed in its justification, IMHO.

    Now, I don't know about Corsair's finances, but they make great products. I would hope, for their sake and for the sake of our system of economics, Corsair and any other company looking to make an IPO does so based on the idea that they need to leverage plans they have for expansion, not for the sake of just piling money as high as they please and decide afterwards they need to justify it for their newfound investors. That is the lesson that should be learned here. Because Facebook has no stated plans on the horizon that will noticeably change their situation. And with no such plans, I don't foresee their stock price getting back to that $38 price (really $42.50 was the first actual trades) from the day it launched.
  • 2 Hide
    Darkk , May 25, 2012 2:18 AM
    Smart move. They already have healthy cash flow to keep the business going and produce solid products. Over the years I've bought several sticks of RAM from them and all worked great.

    It shows they are doing something right.
  • 0 Hide
    eddieroolz , May 25, 2012 2:22 AM
    This is in no way tied to Facebook ;) 
  • 0 Hide
    captaincharisma , May 25, 2012 2:38 AM
    since they actually sell items and not just adspace on the internet they would fare better than facebook. remember facebook may still be a fad like my space and high five and one day may end up like them.
  • 0 Hide
    blazorthon , May 25, 2012 2:40 AM
    captaincharismasince they actually sell items and not just adspace on the internet they would fare better than facebook. remember facebook may still be a fad like my space and high five and one day may end up like them.


    Myspace is still going and is actually making a small comeback.
  • 1 Hide
    ubercake , May 25, 2012 11:53 AM
    Unlike Facebook, Corsair provides tangible products.

    The real problem is over-valuing the stock at IPO time. As long as they don't over-value the share price upon IPO, they shouldn't have any issue.
  • 0 Hide
    Parrdacc , May 25, 2012 12:42 PM
    Corsair actually sells a viable products and good ones at that. Plus its an American company afaik anyway. I would invest if they went public, if I had any money to actually do that.
  • 0 Hide
    crewton , May 25, 2012 12:42 PM
    Corsair is a solid company which produces solid products. When they do go public I'll be buying as much as I can!
  • 0 Hide
    Parrdacc , May 25, 2012 12:54 PM
    DRosencraftWhatever happened to common sense in the market? Or common sense in capitalism? Why is it that as soon as anyone throws out an idea and claims it's the essence of capitalism it suddenly becomes taboo to point out the fallacy of their claim? I ask this because there was a time when the idea behind a public offering of a company on the stock market was done solely because you need the cash flow to build your business. It was an option afforded to companies who had leveraged as much private funding as they could and need more investment to help grow their business. Facebook had plenty of money. Very little of the money they made from their IPO, their $16B, seems to be actually targeted towards in any way doing something Facebook couldn't do before. In fact it seems more like they're trying to find ways to build themselves to justify the IPO. They had tons of cash already, so their IPO at the very least was flawed in its justification, IMHO. Now, I don't know about Corsair's finances, but they make great products. I would hope, for their sake and for the sake of our system of economics, Corsair and any other company looking to make an IPO does so based on the idea that they need to leverage plans they have for expansion, not for the sake of just piling money as high as they please and decide afterwards they need to justify it for their newfound investors. That is the lesson that should be learned here. Because Facebook has no stated plans on the horizon that will noticeably change their situation. And with no such plans, I don't foresee their stock price getting back to that $38 price (really $42.50 was the first actual trades) from the day it launched.


    Well just a few reasons they might have to go public: Liquidity. All those "insiders" that actually made some money, that also includes all the employees that where either given stock or offered stock in the company for last few years, their stocks were basically worth nothing till they went public. In general, stock in a public company is much more liquid than stock in a private enterprise and has a result easier to sell and buy.

    This in turn can lead to Motivation and/or loyalty. A lot of employees are given or offered stock options before a company goes public, sometimes years before, so when they finally do they usually make a good profit which can connect an employee’s financial future to the company’s success.

    Just a few reasons why. Mostly Facebook lost out in mho because well they really do not offer any real product or service as of yet anyway; and the market value when the ipo hit reflected that. Reality is reality.
  • 0 Hide
    ubercake , May 25, 2012 2:06 PM
    ParrdaccWell just a few reasons they might have to go public: Liquidity. All those "insiders" that actually made some money, that also includes all the employees that where either given stock or offered stock in the company for last few years, their stocks were basically worth nothing till they went public. In general, stock in a public company is much more liquid than stock in a private enterprise and has a result easier to sell and buy.This in turn can lead to Motivation and/or loyalty. A lot of employees are given or offered stock options before a company goes public, sometimes years before, so when they finally do they usually make a good profit which can connect an employee’s financial future to the company’s success.Just a few reasons why. Mostly Facebook lost out in mho because well they really do not offer any real product or service as of yet anyway; and the market value when the ipo hit reflected that. Reality is reality.

    It was hard to come up with an initial share price for Facebook, because they do offer a service that's hard to really quantify - keeping people connected while shoving advertising in your face. It's like a TV station which operates based on advertising, but rather than programming, you're offered a social experience. The hard thing is quantifying this because even though social networks have existed for years now, they are pretty new from the standpoint of the stock market.

    Corsair, on the other hand, shouldn't have this type of problem.
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