Tag Archives: United Online
Classmates.com Paying $9.5 Million To Settle Marketing Tactics
Classmates.com is paying $9.5 million to settle a lawsuit that alleges that the social network is duping people to buy paid memberships. Each of the 3.16 million users with “gold” premium accounts are expected to receive $3 for receiving messages that appear to be from old classmates. But they are fake.
Classmates is also facing a potential class-action lawsuit that alleges privacy violations. The social network changed the default settings to make information more public. Classmates is owned by United Online. [MediaPost]
Categories Classmates.com, United Online
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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. 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. 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. Classmates.com recently restructured to become its own reporting unit. Currently Classmates has 3.2 million+ paid accounts.
Other United Online properties include MyPoints, Freeservers, Juno, and NetZero.
Categories Classmates.com, United Online
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