web hosting company nasdaq question

RackSpace is indeed a publicly traded company.

Verio's parent company NTT Communications has a bunch of companies and they seem to be listed as well, but its hard to segment it stricly to hosting operations. I think they are traded in Japan.

Akamai
iWeb (Canada)
Peer1
Hostopia (Canada)

Most these firms provide complex large-scale solutions and networks for other businesses to exist. Not your typical web hosting company.

I'd say RackSpace and iWeb are the closest ones to term hosting as we know it.
 
Artashes said:
RackSpace is indeed a publicly traded company.

Verio's parent company NTT Communications has a bunch of companies and they seem to be listed as well, but its hard to segment it stricly to hosting operations. I think they are traded in Japan.

Akamai
iWeb (Canada)
Peer1
Hostopia (Canada)

Most these firms provide complex large-scale solutions and networks for other businesses to exist. Not your typical web hosting company.

I'd say RackSpace and iWeb are the closest ones to term hosting as we know it.
Click to expand...

thank you for your detail answer

What you mean go public?
Click to expand...
when a company is no longer a private held company and has a IPO(initial public offering) on nasdaq
 
No problem, I was wondering what the pro's and con's of going public for a web hosting company. I know that capital is the main factor but aside from that. any comments much appreciated.
 
Capital (for the most part) is the only reason to go public. You have to be quite large in order to be on the Nasdaq, and you have to pay certain premiums to be listed on various stock markets. Might be easier to get on the S&P or anohter fortune 500 listing.
 
"Going public" means becoming publicly traded on a stock exchange. There are several. High-tech companies tend to prefer NASDAQ, but some are on the NYSE (New York Stock Exchange), and some are traded in stock exchanges in other countries.

The S&P 500 is an index published by Standard & Poors of 500 very large publicly traded companies. If I understand correctly, you can't apply to be on it. They pick you. It's not an exchange, just an index. See http://en.wikipedia.org/wiki/S&P_500

The Fortune 500 is a list published by Fortune magazine of the top 500 US companies in terms of revenue. See http://money.cnn.com/magazines/fortune/fortune500/2008/full_list/index.html
 
Yep. You got it. You can't APPLY to be on there, they list you. Forutune 500 and 700 companies are listings. If you're planning to go public, you better at least be on those lists ;)

As you said - it's easier to be on other stock markets through other countries. Japan is a popular destination for many tech companies. All requires money, and lots of it.
 
Being a public company brings out tremendous trust in the customer/consumer,Its because the buyers knows that the company isn't going the go missing over night,this is basically the stepping stone of Quality service.
 
Being public means you won't go missing? hmmm... Haven't been watching the news lately? Corruption, scandal, takeovers and bankrupsy. Maybe not going "missing" as such, but many of the mortgage companies had to close doors and were taken over by other companies. I wouldn't base being "public" as being "stable".
 
The process of going public is not easy and is quite expensive. The reason companies do it is to raise new capital (or to cash out) - the original owners effectively sell a portion of the company to the public.

One reason that is a time-consuming and costly process is that the government regulations that a company must fulfill are extensive.
 
Just a random shot in the dark here but say you have the money to spend, how much would you be talking about needing to get into this? (I am not a trades/stocks person, just a geek so I got to ask).
 
In essence what you are doing is printing your own money when you list your business on a stock exchange. It costs money to print money. Remember, you're not SELLING stock, they're available for purchase. People have to want to BUY into your company.

In general terms, you're looking at about $100,000 to list your company. A more realistic evaluation is in the $300,000 range. Even on a VIRUTAL stock exchange such as through Second Life or something, you have to have approx $100,000 available for purchase, and it will cost you $1000 to make it available. These are VIRTUAL dollars through Second Life - not real money.

It will cost you money to keep stock prices current. There must be value for people to buy into it.

On a smaller scale, it's easier to find a private investor to pick up shares of your company. Going into the public market where people can purchase even a portion of a share can create a logistical nightmare.

Do a hunt on google for "how to list my company in a public stock exchange" and you'll find a number of articles for various currencies. It can be a great learning experience to play around in the virtual world, but it will take time to learn.
 
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