Accoona: Insult to Injury, as Underwriter Flees


The widely panned IPO of “search engine” Accoona has taken another hit, as even the IPO underwriter has concluded that the company is ridiculous.  Saul Hansell at the Times reports that the underwriter, the unheralded Maxim Group, has not only ditched the company but announced that it stinks: 

“After completing our due diligence review, we have chosen to disassociate ourselves with the company,” said Edward L. Rose, the firm’s vice chairman and general counsel.

It’s hard to overstate what an astonishing diss this is.  This is an underwriter that almost no one in the tech community has ever heard of.  And it has decided that it’s relationship with Accoona is so damaging to its reputation that it has to publicly bash the company.

On a side note, not to get all self-referential here, but it seems indicative of the growing power of the blogosphere that Accoona’s IPO was effectively dead on arrival.  Minutes after the prospectus was filed, analysts had evaluated and trashed it, and after a week it had been thoroughly debunked.

See Also: Accoona: It’s as Bad as We Thought