Geek-Favorite Electronics Retailer Newegg Hatches New Billionaire On Rising Sales

http://www.forbes.com/sites/ryanmac/2013/06/19/geek-favorite-electronics-retailer-newegg-hatches-new-billionaire-on-rising-sales/?google_editors_picks=true



The United States’ second-largest online-only retailer is relatively inconspicuous on the Web. With a basic website and little brand recognition outside of a loyal community of online gamers and computer hardware aficionados, Newegg operates quietly out of California’s City of Industry, selling electronic goods under tag lines like “Shell Shocker” and “Eggxtra! Deals.”

Its motto, which hints at the general public’s unfamiliarity with the company, is just as cheesy: “Once you know, you Newegg.”

Yet, while few people know Newegg, even fewer are familiar with its founder and CEO Fred Chang. A Taiwanese immigrant to the U.S. who has made it a policy not to talk with the press, Chang is now a billionaire due to the rising sales of the company he founded in 2001.

With about $2.8 billion in revenue for 2012, Newegg is an e-commerce force, second only to Seattle-based Amazon.com among online-only retailers in terms of annual sales. FORBES estimates that Chang maintains more than a 30% stake in Newegg. When compared to publicly-traded competitors like Amazon and Overstock.com using price-to-sales multiples, FORBES estimates Newegg is worth nearly $3 billion. That makes Newegg’s founder and chairman worth about $1 billion.