Newegg - History

History

Key players in Newegg's design and execution were Fred Chang (founder and then-CEO) and Ken Lam (former Vice Chairman of the Board). Chang was Newegg's chairman and CEO until August 1, 2008, when it was announced that Chang would step down as the CEO and chairman of Newegg while still being a member of Board of Directors and Executive Committee. He also retained his position as the President of Newegg's Chinese operations. In time, ABS Computers reverted to a subsidiary of Newegg. In 2005, Newegg.com was named one of the Internet's Top 10 retailers by Internet Retailer Magazine, with 2004 sales revenue of just under $1 billion. Newegg.com grew an additional 30% in 2005, bringing annual sales to approximately $1.3 billion. Newegg launched NeweggMall.com in July 2008, Newegg.ca in October 2008, and NeweggBusiness.com in August 2009. In 2009, it was listed as #234 on the Forbes America's Largest Private Companies list. It launched Newegg Marketplace in 2010 and exceeded $2.5 billion in revenue that year. The company has about 2,500 employees.

Newegg also sponsors technology industry events and PC gaming tournaments for titles including Counter-Strike, Warcraft III and Rome: Total War. Newegg had a monthly Case Mod contest in 2005, where contestants submitted pictures, descriptions, and directions describing how to mod their computers into esoteric appearances and functionalities.

On September 28, 2009, Newegg Inc filed for an IPO (initial public offering) with the U.S. Securities and Exchange Commission. The filing also stated that newegg.com has been profitable every year since 2001 and generated sales of $2.1 billion in 2008. The company's largest outside shareholder is New York-based venture-capital firm Insight Venture Partners. The IPO is being managed by JP Morgan, Bank of America, Merrill Lynch and Citi. In 2011 it officially withdrew its registration for filing for an IPO, saying it would continue to explore alternative options for funding.

On February 10, 2010, Newegg was sued by three former employees accusing it of numerous labor and business abuses, such as violating "a slew of labor laws, overwork and abus immigrant workers and order employees to hack into competitors' computer systems." Newegg strongly denies all allegations in the lawsuit. In an official statement, the company stated:

"Newegg is aware of the allegations made by two former employees and a former consultant. Newegg has always taken pride in the fairness of our labor and hiring practices and to ethical business practices toward our competitors, vendors and most of all, our valued customers. We have always been fully committed to compliance with all applicable laws and regulations. Accordingly, we strongly deny the assertions made by the individuals filing this lawsuit, and intend to defend ourselves vigorously and thoroughly against claims that have neither merit nor basis in fact."