Wednesday, July 01, 2009

Changing The Way The World Learns Languages

What was he thinking when Tom Adams, CEO (37), chose to take Rosetta Stone public in April during the worst downturn in recent memory?
Since 2003, the company has grown from a small, family-owned business with $10 million in annual revenue and 90 full-time employees into a 1,200-employee operation with first-quarter revenue this year of $50.3 million.
Rosetta Stone’s shares have recently traded above $27 (shares went out initially above the estimated range of $15 to $17 and raising $112.5 million). The wildly successful offering sent a message of good news worldwide for privately owned companies.

Did Tom Adams take a calculated risk? Find out here where Lora Kolodny with The New York Times recently spoke with Mr. Adams about his decision.

Original entry about about Rosetta Stone and its interest to grow global can be found here (4/23/09).


Laurel Delaney said...

Just received word that Rosetta Stone raised $112.5 million (not $129 million) in the IPO. Please make a note. Company is trying to correct The New York Times piece.

Next, we updated image. Much, much nicer. More hip and relevant!

Laurel Delaney said...

Just like there are two sides to every coin, there are two sides (interpretations) to every story, too!

More information on the Rosetta Stone IPO has been provided to me that allows us to determine how much they made at IPO.

Apparently, the number cited in The New York Times story that ran June 30th was about how much they "raised" not necessarily took home, as liquid cash from the IPO.

The difference between $129 million and the $112 million has to do with something called an options allotment (a.k.a. greenshoe) value of the IPO.

The number published reflects the value of the IPO transaction, from the institutional investors point of view.

So there you have it. Thank you dear anonymous reader for educating me on this. In the future, I will always get the other side before I pass along information on anything to do with IPOs because I am clearly no expert on the topic.

For more (new) information, go here: