VA Linux: The biggest dotcom IPO
9 days ago
- #Linux
- #dotcom-era
- #startups
- VA Linux was a notable dotcom-era startup that sold Linux pre-installed workstations and servers.
- Its IPO on December 9, 1999, saw a record 698% surge in stock price, raising $132 million and reaching a $9.5 billion market cap.
- VA Linux initially appealed to businesses by offering pre-configured systems that saved time and effort, holding 20% of the Linux hardware market at its peak.
- The company's business model was unsustainable as larger vendors like Dell and HP began offering Linux-compatible systems at lower costs.
- Linux hardware support improved over time, further eroding VA Linux's market position.
- VA Linux exited the hardware business in 2001, rebranding multiple times before being acquired by GameStop in 2015 for $140 million.
- Despite its decline, VA Linux survived longer than many dotcom-era peers, operating independently for 16 years.