Posted by: Aaron Pressman on May 11, 2007
Well, online travel site Orbitz’s registration statement for an initial public offering has been filed for less than two days and it’s already getting universally panned around the blogosphere. Private equity giant Blackstone took the company off Cedant’s hands last summer and wants to do a quick flip. Cedant bought Orbitz back in 2004 after Orbitz’s initial modestly successful IPO. Problem is, the company has been reconfigured so many times, its hard to get a clear read on its financial condition.
Hedge fund manager Paul Kedrodsky may have been first to take a shot on his Infectious Greed blog, calculating that Orbitz lost $144 million last year on revenue of $752 million. Journalist Kevin Kelleher over at GigaOM says Orbitz went even further, saying Orbitz is now the leading candidate for worst IPO of 2007. Howard Lindzon, creator of Investing Insight’s favorite video blog, Wallstrip, calls it a disaster “thrown together by a bunch of private equity greedmongers.” Now Technorati is showing 57 blog posts and I can’t find a kind word in ‘em. Ouch.