Megaupload Was About To Go Public Before Government Takedown
Megaupload was planning to go public on the U.S. stock market with a multi-billion dollar IPO before the U.S. government shut them down. Megaupload was having discussions with top auditors and some of the largest investment banks. The talks ended in January after Megaupload founder Kim Dotcom and six other executives at the company were arrested on charges of racketeering, copyright infringement, and money laundering.
Dotcom said that they were negotiating with the world’s largest accounting firms and many of the international banks were interested in underwriting the IPO. Megaupload also considered becoming public through a reverse merger or buying a company that was already listed.
“I started providing advice to Megaupload management on exploring and researching options on becoming publicly listed by IPO or back door listing and other fund-raising options in early 2011,” said corporate advisor Robert Lim. “I understand the management and some of the shareholders had been discussing and exploring these options even prior to this time.”
Megaupload had a discussion with the “Big Four” largest accounting companies that handle the majority of audits for publicly traded companies. Several of the Megaupload executives are awaiting trial and potential extradition to the U.S. Megaupload’s legal team will most likely reference the fact that Megaupload was planning to enter the stock market and argue that it was a legitimate and profitable company.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry