Well, we won’t find out after all just how much Wall Street thinks the social networking craze is really worth. Citing “current market conditions,” Classmates Media Corporation has pulled its IPO, which had been scheduled for pricing this week.
Actually, you can still own stock in Classmates Media and its Classmates.com website – just not directly. It is and will continue to be a wholly owned subsidiary of United Online, which trades under the Nasdaq ticker symbol UNTD. In addition to Classmates, major operations of United Online include NetZero and Juno.
United Online said it expects to record transaction-related costs of approximately 4.5-5.5 million during Q4 in connection with its decision to withdraw the IPO, which had been expected to sell 20% of the company for an estimated 120-144 million.