The Shrinking Digital Media IPO

After a span of 12 weeks at the start of the year in which seven digital media companies filed to go public, the IPO market for digital media firms seems to have dried up. The most recent digital media firm to register for an IPO was mobile marketer Velti, which did so two months ago. The rocky stock market is likely to blame, and the record of all four digital media companies that have gone public is unimpressive. All cut the size of their offerings significantly and their stocks haven’t had strong runs.


ReachLocal, which filed to raise $100 million in December, ultimately raised about $54 million when it went public in May. The company priced its shares at $13. They’re now trading at $12.50, down from a high of $16.99.



QuinStreet (NSDQ: QNST) raised $140 million when it made its Nasdaq debut in February, instead of the up to $250 million it had hoped for when it filed its S-1 in November. Its shares are now trading at $11.96, 20 percent off the $15 they began trading at.



Motricty repeatedly shrunk the size of its offering, which ultimately netted about $60 million last month instead of the $250 million it had wanted to raise in January. Its stock is now trading at $8.26, down 17 percent from the $10 it started at.



TeleNav (NSDQ: TNAV) raised about $56 million in May. It had filed to raise $75 million seven months before. The stock started trading at $8 and is now trading up about 6 percent at $8.49.