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PayPal's IPO Process

The on-line credit-card payment company PayPal had a successful Initial Public Offering and was then acquired by E-Bay. However, they first suffered a series of setbacks. Read the articles below and do some research in ProQuest and other search engines on PayPal.

Write a three page (excluding title page and references) paper answering the following question:

If you had been in charge, how would you have handled PayPal's IPO process differently?

Case-related Articles:

Hennessey, R. (2002). Deals & Deal Makers: PayPal's Debut May Not Signal Web-IPO Trend, Wall Street Journal; New York, N.Y.; Feb 19, 2002. retrieved November 20, 2009.

Wingfield, N. & Bransten, L. (2002). PayPal Insiders to Sell Shares Valued at About $141.9 Million. Wall Street Journal; New York, N.Y.; Jun 13, 2002, retrieved November 20, 2009.

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Below are my answers.

Anna Liza Gaspar

An Analysis of the PayPal Initial Public Stock Offering Process

PayPal (NNM: PYPL) went up by 50%, as a matter of fact it was 55% according to Davidson, 2002, p. B02), from its IPO price of $12 to $20.09 in its first day of trading in the NAsdaq National Market stock exchange (Aragon, 2002, p. 1). After the so-called crash, together with the fact that the company hasn't shown any profit since it started operations in 1999, no one was expecting this kind of public reception for PayPal's Valentine's Day initial public offering. Nevertheless, experts predicted that this warm reception for PayPal might not necessarily translate to other web IPOs (Hennessey, 2002).

PayPal was created by Peter Thiel, a hedge fund manager, and Max Levchin who is an engineer specializing in ...

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This solution discusses PayPal's IPO process.