Dan Rosensweig, the former COO of Yahoo and recently the CEO and president of the Guitar Hero division of Activision Blizzard, is taking the CEO job at Chegg as reported by Kara (Ms. Exclusive) Swisher at AllThingsD.com.
What Does This Mean? – IPO Bound Chegg
Dan Rosensweig was hired to take Chegg public. Chegg is doing extremely well in the revenue department. The rational for Rosenweig is that Chegg will go public, according to a source.
Hiring Rosenweig sets the stage for an Chegg IPO. Although not publically announced by Chegg (the IPO plans that is), it’s a no brainier – they are killing it in revenue. Chegg is going public according to a source.
To me Chegg is an amazing story because most companies are pushing the limits on revenue (via unethical offers), but Chegg is just scratching the surface. This company can do very well in an IPO.
Chegg was launched at Iowa State University in 2005 as a “hyper-local” classifieds directory. In fall 2007, Chegg introduced their revolutionary textbook rental service. Chegg now offers its services to more than 6,400 universities and community colleges across the country.
Chegg lets students rent as many textbooks as they like with just a few clicks. Books are delivered in less than a week. Renting textbooks through Chegg not only saves students a significant amount off their textbook bills, but it also eliminates the hassle of waiting in long lines at the bookstore. Best off all, with Chegg there are no monthly subscription fees or hidden charges.
I think that Chegg is a big winner and will be a great IPO. I’m in good company on this the following VCs think so as well – they are Kleiner Perkins, Foundation Capital, Insight Venture Partners, and Gabriel Ventures.