August 8, 1995 had taken an unexpected turn for Netscape Communications Corporation's board of directors. Earlier that morning, the day before the company's scheduled initial public offering (IPO), Netscape's lead underwriters proposed to the board a 100%increase in the original offering price from $14 to $28 per share. Founded in April 1994,Netscape Communications Corporation provided a comprehensive line of client, server, and integrated applications software for communications and commerce on the Internet and private Internet Protocol (IP) networks. The company's most popular product, Netscape Navigator, was the leading client software program that allowed individual personal computer (PC) users to exchange information and conduct commerce on the Internet. Incorporating both browser and server functions, the company's integrated applications software programs were designed to provide enterprises with the capability to manage large-scale commercial sites on the Internet. Such applications enabled these enterprises to conduct full-scale electronic commerce through a seamless system. Netscape had incurred total losses of $4.3million on total revenues of $16.6million for its first two operating quarters ended June 30, 1995. The company expected to continue to operate at a loss for the foreseeable future.
At the University of Illinois at Urbana-Champaign, a group of computer science students working at the National Center for Supercomputing Applications (NCSA) developed the graphical software program that gave rise to the notion of "surfing." Named NCSA Mosaic, the software program enabled nontechnical users to access and retrieve information on the Web. The Mosaic code organized Web information into neat collections of graphical electronic menus on which users could simply click-and-point to browse their contents. Then shortly the name changed to Netscape. Netscape entered the broad Internet market via the Web browser market, where...
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