Classmates Media Corporation was one of the first social networks to become popular. Classmates is especially known for their pop-up ads that Internet users would see constantly. Classmates’ advertising is very viral. On Monday, Classmates announced that they are filing for an IPO and is moving on up and out of the schoolyard.
Classmates is owned by United Online Inc. (UOL), who will maintain control of the company through stock ownership even after the IPO. Classmates intends on using the money from the IPO to pay back expenses to UOL. Some of the remaining money raised from the IPO will also go towards company growth.
Classmates currently has about 8.4 million registered members, who generally provides the name of the elementary school, middle school, high school, and colleges that they have attended. This way if there is any upcoming 5-, 10-, 15-, etc. year reunions, those members could be notified. It was a pretty simple idea, but a great concept. I believe that a lot of today’s social networks were inspired by Classmates.
Goldman, Sachs & Co., along with Deutsche Bank Securities and JPMorgan will be underwriting the offering and Classmates will trade under the NASDAQ Global Market as the symbol, CLAS.