Classmates.com Cancels IPO

 Posted by at 11:57 am  Web
Dec 132007
 

The New York Times reports that United Media has withdrawn its proposal to IPO its Classmates.com unit.

United Media cited “unfavorable market conditions” for the withdrawal, but Cowen & Co. analyst Jim Friedland puts it more bluntly: “We expect the Classmates.com subscriber base to peak in the first half of 2008, followed by a steady decline to zero by 2012.”

Ouch!

Classmates.com is a paid subscription site that apparently doesn’t have much of a plan for how to compete against free sites like Facebook that provide better services and larger social networks.

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