Classmates.com IPO Officially Postponed
United Online, parent company of Classmates.com announced that they are withdrawing their IPO for the school reunion-focused social networ.Â Currently Classmates.com is facing a lot of competitive pressures (such as MySpace/Facebook/Friendster/Hi5), but is pulling out due to current market conditions.Â United Online still plans on eventually having a Classmates.com IPO according to a 10K filing.
United Online has already capitalized $3.6 million in IPO costs by December 31, 2007 and if they don’t have an IPO for Classmates, then these costs will have to be filed as an expense in a future period.Â Classmates.com recently restructured to become its own reporting unit.Â Currently Classmates has 3.2 million+ paid accounts.
Other United Online properties include MyPoints, Freeservers, Juno, and NetZero.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry