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Classmates IPO

Classmates filed with the SEC today… Initial Public Offering is on its way.

Having at one point personally spent cold hard cash for an annual membership at Classmates.com, I can see the validity in owning stock of one of the largest and arguably the ‘Grandaddy’ of social networking companies online. Classmates was one of the true pioneers of social networking, and has built a huge registered data base of free users (Rumoured to be 50 million strong) and an impressive two million paying customers.

A concern for potential investors will be in the financials and the competition. On gross revenue of over 40 million, Classmates is still losing money on paper. Does that matter in the world of Internet stocks? In the short term no, but over the long term absolutely. Over the long term, they will compete with the likes of My Space & Facebook. One of the key reasons I no longer keep a paid membership at Classmates, is all my school friends are now using Facebook…

Either way the IPO is registered and official with the SEC, and will be one I will follow closely.

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Comments

Melina

very interesting. i’m adding in RSS Reader

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