In December, United Online (NSDQ: UNTD) announced the withdrawal of its plan to hive off its Classmates unit via IPO. Around the time of the planned offering, there was a lot of talk about the competitive pressures facing the company, but UNTD is sticking to its explanation that the withdrawal was just a function of market conditions… so if those conditions were to turn around, then could we still see a Classmates IPO? From its latest 10K: “It is still our strategy to complete an IPO of CMC and we have capitalized approximately $3.6 million of IPO costs at December 31, 2007 which we will have to expense in a future period if we do not proceed with an offering. There is no assurance that an IPO will be completed in the near term, if at all. If we do not complete the IPO, the market price of our common stock could be adversely affected.”
It still seems like Classmates missed its window, possibly for good, but officially an IPO is still the plan. And in the meantime, the company recently reorganized its business to make Classmates its own reporting unit.