GigaOM doesn't like the Orbitz IPO

Web, Tech and VC uber blog GigaOM has a scathing prediction for the Orbitz IPO, nominating it as the "Worst IPO of 2007" months before the actual float.

Concerns highlighted are:

• highly complex financial (caused by constant structural changes and acquisitions);
• the company will likely be making a loss at the time of the IPO;
  
• no voting rights; and
• the proceeds being used to pay down debt at Travelport rather than for capital, growth and investment.
  

Here is the full article from Kevin Kelleher at GigOM - worth a read.

The question raised by GigaOM is not "is Orbitz a great company?". We all agree that Orbitz it is (even Kevin agrees). It has a great business in the US and a hotel powerhouse in Flairview. The question instead is whether or not this is the right circumstance, structure and timing to float the company.

Thanks to fellow Travelport refugee Edd McArdle of Inside C who first sent me the link.

UPDATE - here is Valleywag's equally tough commentary