Megaupload was working on a multi-billion dollar IPO

News has emerged that Megaupload had asked its legal team shortly before it was shut down in January, to investigate the possibility of raising more money for the organisation, by selling stock to investors through an initial public offering (IPO).

From an article by TorrentFreak early on Tuesday, Megaupload was looking at receiving a multi-billion dollar valuation after it had approached the "big four" auditors, as well as talking with several investment banks, some of which specialise in placing technology firms on the stock market.

While Megaupload had a relatively short existence in the tech world, it was producing quite a healthy profit for itself. "Despite the global economic downturn, the tech sector still seems to be providing the most successful IPOs. Therefore, underwriters said Megaupload had a good chance to be a very successful IPO, with an estimated valuation of at least a couple of billion US dollars," said Robert Lim, a Hong Kong-based corporate adviser.

Megaupload's management was reportedly considering vast restructuring and enhancing corporate internal controls and governance processes, in order to enable it to be placed onto the stock markets. Lim said that these were "basically, some of the essential key things private companies need to do to prepare for public listing.”

Mr Lim was reportedly surprised when Megaupload was shut down in January by the US authorities, as he believed that the organisation's intentions of entering public trading was a sign it had legitimate intentions. A question is now floating around as to whether authorities were aware of Megaupload's intentions and whether this affected the timescale of its shutdown.

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6 Comments

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It certainly seems to be that way. From the interview he did on TV here in NZ he is a very up front guy. Sure he's got a chequered past but if what he states is true, the company went above and beyond their legal requirements under the DCMA laws and provided direct access to the RIAA and MPAA associated companies to remove offending files, which they did. It really does make the conspiracy theories come out, that if its not shut down, then campaign contributions may be less forthcoming.....

srbeen said,
This, along with their musicbox-thingy they were working on (https://www.youtube.com/watch?v=UNwO4-7vNSU, http://techcrunch.com/2012/01/...ox-digital-jukebox-service/) which artists were very interested in as well as consumers, The one which was going to be (touted to be, possibly could've been) a huge threat the RIAA, amazon, and iTunes... Anyone seeing the silver lining here yet??
It wouldn't amaze me at all. I hope if this is true, that it comes to light and the real guilty people are slapped hard.

Lucas said,
It wouldn't amaze me at all. I hope if this is true, that it comes to light and the real guilty people are slapped hard.

*puts tin foil hat on*