MegaUpload close to ‘multi-billion dollar’ public offering before raid: reportApril 17, 2012
The cyber locker website MegaUpload was planning to go public with a “multi-billion dollar” IPO when authorities raided their facilities and accused them of a “mega conspiracy” to pirate copyrighted materials, according to a corporate adviser who spoke to a popular tech blog this week.
Torrent Freak, which covers news relating to peer-to-peer media sharing networks, quoted Hong Kong-based corporate adviser Robert Lim in a report Tuesday. He claims to have worked with MegaUpload founder Kim Dotcom and the rest of his management team to prepare the company for a top-to-bottom audit by one of the major accounting firms that helps companies go public.
Lim said they were working on an IPO since the beginning of 2011, but it all abruptly died in January 2012 once the U.S. Department of Justice shut them down. MegaUpload had over 150 million users at the time. Lim added that MegaUpload was also speaking with a number of major investment banks about their IPO, and expected that they could hit or exceed the billion dollar mark.
If that’s accurate, MegaUpload could have been one of the largest-ever IPOs for any tech company, but Facebook said in February that it was shooting even higher, aiming to raise $5 billion in an offering that could be valued as much as $75 billion in total. Facebook, however, is exponentially larger than MegaUpload was at its peak — the social network is expected to reach 1 billion users later this year, whereas MegaUpload said it had about 150 million users. Even though the gulf between the two companies’ valuations would have been vast, MegaUpload may yet have achieved the “multi-billion” range, had it been allowed to go public.
“This does not fit with the ‘Mega-Conspiracy’ concept that Megaupload management is accused of, including that they knowingly and secretly conspired to do and hide criminal activities in Megaupload,” Lim said to Torrent Freak.