82.1 F
San Fernando
Friday, Mar 29, 2024

Details Given of Classmates Stock Offering

An estimated $117 million is expected to be raised in the initial stock offering for Classmates.com, the social networking site being spun off by United Online Inc. In a filing with the U.S. Securities and Exchange Commission, the company stated a selling price of shares in Classmates Media Corp. between $10 and $12. The full proceeds of the initial offering could go as high as $136 million if the underwriters exercise an option to purchase additional shares. Woodland Hills-based United Online will own 80 percent of the shares. The proceeds of the offering will be used to finance growth, capital expenditures and potential acquisitions; and repaying $50 million of notes payable to United Online, plus accrued and unpaid interest. Acquisitions would include companies and technologies that expand geographic reach and complement existing businesses, the filing said. Classmates.com had 50 million registered users on Sept. 30, of which 3 million were pay accounts.

Featured Articles

Related Articles