Goldman Sachs: Don't Expect Any Internet IPOs This Summer
BY John McDermott
The co-head of investment banking for global technologies says he doesn't expect any tech IPOs until after Labor Day.
After the Facebook IPO mess, it looks like tech bankers may be taking the summer off.
Anthony Noto–co-head of telecommunications, media, and technology investment banking at Goldman Sachs–told the crowd at the F.ounders conference on Thursday that he doesn’t expect another Internet company to go public until after Labor Day, TechCrunch reports.
“If you go public now, you have to have a high quality company that doesn’t have a business model in transition.”
With Facebook shares down about 30% from their initial peak, other Internet companies appear to be postponing their own IPO plans.
Reports about Internet travel website Kayak stalling its IPO surfaced shortly after Facebook’s stock flop, and other companies–most notably, Twitter–have experienced significant decreases in company valuations recently.
Facebook cannot shoulder all of the blame, however. Groupon and Zynga have also seen large drops in share price this year.
JOHN MCDERMOTT is a business and culture reporter whose work has appeared in the Chicago Tribune and Playboy and on AOL.com. He recently moved from Chicago to Brooklyn, New York, to work for Inc.com. @J_M_McDermott