Web search IPO stalls on underwriter doubts from CNN Money reports that Accoona’s expected $80.5 million IPO has failed due to their underwriter backing out.

Maxim Group, their underwriter, backed out after completing an in-depth review of the company. The New York Times reported Edward L. Rose, the firm’s vice chairman and general counsel for Maxim, said:

After completing our due diligence review, we have chosen to disassociate ourselves with the company.

This is the second time this year Accoona showed interest in an IPO and had to pull back. The first was earlier this year, when attempting to be listed on the London’s AIM exchange.

Danny adds:

“It’s been two years they have been saying they have a great search engine, and they are just not delivering,” Mr. Sullivan said. “They can’t say it’s because they didn’t have enough promotion. You can’t get any noisier than having the former president of the United States come out and pitch for you.”

The company’s founder, reportedly and allegedly, has been having some legal problems over the past several years.

Related Topics: Business Issues: Acquisitions & Investments | Search Engines: Other Search Engines

About The Author: Barry Schwartz is Search Engine Land's News Editor and owns RustyBrick, a NY based web consulting firm. He also runs Search Engine Roundtable, a popular search blog on very advanced SEM topics. Barry's personal blog is named Cartoon Barry and he can be followed on Twitter here. For more background information on Barry, see his full bio over here. See more articles by Barry Schwartz