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How OpenTable Went Public and Why Others Aren't

Posted Aug 06, 2009 08:30am EDT by Sarah Lacy in Investing, Internet, Venture Capital, M and A, IPOs, Recession

Not only was OpenTable a rare venture-backed IPO, it was a modest sized IPO with a $665 million market cap. Those are just the sort of deals that are supposedly impossible in a day of Sarbanes Oxley expenses and thin analyst coverage on smaller deals.

So what made OpenTable brave the markets and what made it the exception? We ask CEO Jeff Jordan that in the third segment of our post-earnings sit down interview.

Unlike a lot of people in the Valley, Jordan doesn’t think the issue is a structural problem between Wall Street and the Valley. He just thinks most private company CEOs don’t want to file.

And, we couldn’t let Jordan go without weighing in on two issues: His thoughts about the state of his former employer eBay and his rebuttal to users like me who hate OpenTable’s dining points system.

30 Comments

chubby
chubby - Thursday August 06, 2009 09:27AM EDT

buddy.wilson@rocketmail.com - Thursday August 06, 2009 08:43AM EDT --- that's what we really want here, another political kook spamming the boards. Yahoo, I think you should either moderate these boards or close them down.

j2n272
j2n272 - Thursday August 06, 2009 09:30AM EDT

People will eat out no matter how much money they have or don't have. Therefore it is realistic to be making money in the restaurant business even in an economic downturn. Becareful, however, not all eateries will flourish. The consumer will be picky and choosey. Risky investing in food.

- Thursday August 06, 2009 09:34AM EDT

@buddy Fair is just that, fair. It is not fair to tax people absurdly more than others. They earned their money just as you or I did. Just because they have more, thus are able to earn more, (money compounding) does not give anyone the reason to tax them more. Higher taxes on success is never good for anyone. Not more poor person has hired anyone. People with money hire people. The problem is, you are looking up saying hey, they have more, take theirs. Well if you were them, you would obviously have a different opinion. And don't go with they are all crooks. I am sure there are many more middle and lower class people committing crimes then the rich. We hear about the rich because their crimes have huge $$ amounts attached to them. But it is simply exponential. *IF* anyone really wanted to help the poor, then why would they just a month or so ago raise cigarette taxes 60 cents a pack? This hits the poor the hardest? Education and a free and open market are the best for the poor, the middle, and the wealthy. Simply proven over and over. (are poor are considered wealthy by many standards)

Elmer
Elmer - Thursday August 06, 2009 09:37AM EDT

buddy.wilson@rocketmail.com - We are the wealthiest country with the best health care in the world. Why do you and Obama want to destroy our wealth and lower the quality of health care?

Yahoo! Finance User
Yahoo! Finance User - Thursday August 06, 2009 09:39AM EDT

Hey Buddy, maybe you should work harder in your next life and earn your fair share the American way. I'm by no means rich but I sacrificed a lot to reach the level of income I have today. I basically spent my entire 20s and 30s in a library in order to guarentee financial freedom for myself. This is all while losers like you were playing dungeons and dragons and masturbating all day with your mothers underwear. There is no reason I should support wastes of space like you Buddy.

Yahoo! Finance User
Yahoo! Finance User - Thursday August 06, 2009 09:39AM EDT

Hey Buddy, maybe you should work harder in your next life and earn your fair share the American way. I'm by no means rich but I sacrificed a lot to reach the level of income I have today. I basically spent my entire 20s and 30s in a library in order to guarentee financial freedom for myself. This is all while losers like you were playing dungeons and dragons and masturbating all day with your mothers underwear. There is no reason I should support wastes of space like you Buddy.

Yahoo! Finance User
Yahoo! Finance User - Thursday August 06, 2009 09:40AM EDT

Hey Buddy, maybe you should work harder in your next life and earn your fair share the American way. I'm by no means rich but I sacrificed a lot to reach the level of income I have today. I basically spent my entire 20s and 30s in a library in order to guarentee financial freedom for myself. This is all while losers like you were playing dungeons and dragons and whacking it all day with your mothers underwear. There is no reason I should support wastes of space like you Buddy.

Matthew
Matthew - Thursday August 06, 2009 09:41AM EDT

Hey Buddy, maybe you should work harder in your next life and earn your fair share the American way. I'm by no means rich but I sacrificed a lot to reach the level of income I have today. I basically spent my entire 20s and 30s in a library in order to guarantee financial freedom for myself. This is all while losers like you were playing dungeons and dragons and whacking it all day with your mothers underwear. There is no reason I should support wastes of space like you Buddy.

Elmer
Elmer - Thursday August 06, 2009 09:41AM EDT

Please note that the mid-class and lower will suffer the most from this destruction of wealth and our health care system.

Yahoo! Finance User
Yahoo! Finance User - Thursday August 06, 2009 10:04AM EDT

I totally agree with the whole "why tax higher incomes more" . I have friends that have made a boat load of money, and they busted their but to make that money. They enjoy working and making money like I like playing golf. So, why would we tax them more because they outworked someone else. On the other end of the spectrum I have another friend who paid in 4,000 fed income taxes and got back 5,000. This is not right. Everyone should pay their share.

- Thursday August 06, 2009 10:07AM EDT

Moderate the boards and eliminate the bullshit

yogi9448
yogi9448 - Thursday August 06, 2009 10:08AM EDT

Looks like the Web Obamaroids have found life after the election, or is it those Billions the Feds gave ACORN finally being put to use with the jokers poll numbers falling.........I fault no one from trying to scratch out profits anyway (morally) they can in this market. Will it change the wife and I dining out - no. We have no debt (cars, kids college fund, toys, etc) except for a house that we hope to have paid off in the next 3 years. Then we'll just have to pay home insurance and Obama's equity (if he gets his way) tax on paid off homes. Part of living within our means and paying for our dreams is eating out (quality not quantity - same as my beer man law) maybe once a month.

titislong
titislong - Thursday August 06, 2009 10:10AM EDT

I must say, this woman is a great interviewer. She straight out compained about the awards program without offending him, and he had to handle the situation carefully. Great job.

bluemoon
bluemoon - Thursday August 06, 2009 10:13AM EDT

PEOPLE GET YOUR MONEY OUT GET YOUR MONEY OUT , IM GOING ALL CASH ,GOING ALL CASH ! UP 2,800 POINTS SINCE THE END OF MARCH ! WENT UP TOO MCH TOO FAST , PEOPLEE GO ALL CASH GO ALL CASH ,I HAVE LEARN MY LESSON IN THE MARCH CRASH , IT IS RIME TO GET YOUR MONEU AND GO ALL CASH CASH CASH! PEOPLE YOU HAVE BEEN WARN YOU HAVE BEEN WARN ! USE LOGIC HEAR PEOPLE WERE UP 2,800 POINTS SINCE MARCH ! TOO MUCH TO FAST SEE A HUE HUGE HUGE CRASH COMING ! GET OUT GET YOUR MONEY OUT! GO ALL CASH ASH CASH

Dale
Dale - Thursday August 06, 2009 10:20AM EDT

In 1964 my father-in-law was in the 90% tax bracket. One day he and I were going out on a sales call and his comment always stuck with me. "Why should I go to the trouble to keep one dime out of a dollar. Less tax is the way to restart the economy.

bluemoon
bluemoon - Thursday August 06, 2009 10:21AM EDT

SE A HUGE HUGE HUGE CRAH COMING WERE UP 50 PERCENT SINCE END OF MARCH UP 2,800 POINT ! WENT UP TOO MUCH TO FAST !GET YOUR MONEY OUT ,LERN MY LESSION IN THE MARCH CRASH CRASH! IM GOING ALL CASH CASH CASH ! GET YOU MONEY OUT

Larry
Larry - Thursday August 06, 2009 10:26AM EDT

Buddy, I just can't let you get away with all that without pointing out the truth. Reagan lowered the highest tax rates from 70% downward and we had the largest economic expansion in US history and more tax revenue coming in to the government. You can't ignore history when you make these claims. Just about every economic option has been tried before so we know the effects on raising taxes on the rich...it's less jobs for the middle and lower class. Did you ever see a homeless guy put anybody to work?! How bout a flat tax across the board and take the politics out of it since politics seem to be destroying our country. Oh, and I am not a rich guy saying this. I am middle class also.

B C Y
B C Y - Thursday August 06, 2009 10:47AM EDT

Be brave. Vote against your own representatives if they are not part of the solution. 75% of the current members of Congress are no better than the obvious buffoons, Pelosi, Boxer, Schumer, Frank, Waxman, etc. And the so called moderates are just enablers. Vote for those who activley demand responsibility in government. It's not a party thing, It's about integrity, and representing the people and not personal political success.

Enrique
Enrique - Thursday August 06, 2009 10:50AM EDT

That's dumb. Why should people making more pay more as a %? Fair contribution should be fair. Redistribution of wealth does not work. You will end up with a nation of lazy americans voting themselves an income.

Nick
Nick - Thursday August 06, 2009 10:58AM EDT

Until we rid ourselves of Income Taxes, the ONLY way to restart the economy is to rebuild the middle class, which means pulling poor people up, and wealthy people down. This is the ONLY solution that is feasible. In the ancient monetary system that we continue to live in (we are well overdue for a complete overhaul of society as a whole) the only way to be productive is to have a small wealth gap between middle and upper classes while maintaining the same overall wealth as a nation. When we finally grow up and move to a resource based society instead of money based, we will no longer deal with any more of thei nonsense. The Venus Project, look it up.

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