The week’s news was dominated by two IPO filings: Skype, which filed for a $100 million IPO, and Demand Media, which did so a week ago and has since faced criticism for not being as profitable as it had claimed to be. What big digital media name will be next? Our bets, based on some recent hints, below.
Hints: The female-oriented blog network hired former Microsoft (NSDQ: MSFT) VP of corporate development Bruce Jaffe, who is known for his deal-making, as its new CFO in May, a likely precursor to a filing, which is expected to be coming soon.
Financials: Glam has raised $130 million, including $50 million in a fifth round at a $750 million valuation in February. Revenue was said to be $55 million last year. The company became profitable in September.
Hints: The business social networking site has been mentioned as an IPO candidate for over than three years now. Last June, when Jeff Weiner joined as CEO, Weiner clarified his hire was not a prelude to an IPO. The speculation, though, was that the company would wait roughly a year until the market improved. That’s now.
One other sign: The company recently hired Shannon Stubo, who led communications at Open Table during its IPO a year ago, as its top communications executive.
Financials: LinkedIn last raised money at a $1 billion valuation two years ago. That figure jumped to $2 billion last month when hedge fund Tiger Global Management bought a stake in the company. LinkedIn is profitable and revenue was $100 million in 2008; it’s likely now a multiple of that.
Hints: Zynga has been rapidly building out an impressive executive team. Over the last month alone, the social gaming giant has added Allen & Co. investment banker David Wehner as CFO and MySpace (NSDQ: NWS) and Facebook veteran Owen Van Natta as EVP of business operations. CEO Mark Pincus said in April that the company didn’t have any current plans to go public, although that hasn’t silenced the buzz.
Financials: Zynga certainly doesn’t need the money an IPO could bring; it has raised $384 million in funding (not including a reported $100 million to $200 million investment from Google). The company is profitable and revenue is expected to double to more than $400 million this year. RockYou, another big social networking app developer, could also be a candidate for an offering, although its revenue, which has been estimated at between $30 million and $40 million, might be too low. It has raised $127 million over four rounds.
Hints: Back in March, the New York Times reported that the online music service was being courted by investment bankers who wanted to take it public. It has also hired a new CFO, Steve Cakebread, who was CFO at Salesforce.com when that company filed for an IPO.
Financials: Like Glam, Pandora also was profitable for the first time at the end of last year. Revenue is expected to reach $100 million this year.
Wild cards could include a filing by dating site eHarmony, which has been rumored to be an IPO candidate for several years and is reportedly bringing in revenue of more than $250 million a year, but said as recently as last month that it has no current plans for an offering. Brightcove, which supposedly had revenue of $80 million last year, is another possible contender, although it has talked publicly about an offering coming in 2011.
Some other frequently mentioned big names, including Yelp, Twitter, Facebook, and Digg seem much much less likely. Twitter has said an IPO is “way out,” while Yelp has said it “will definitely not go public this year.” Facebook, meanwhile, has recently given hints that it might wait until 2012. Digg, which was once on many people’s lists, is mired in layoffs and a management shake-up.
Which companies did we overlook?