Via Doug McIntyre comes word that United Online Media (UNTD) is cancelling the planned IPO of its Classmates.com division due to market conditions.
The much-anticipated spin out and IPO was to raise $125 million.
As PaidContent points out, while there was enthusiasm for a pure-play social network, Classmates.com subscription model was not quite the same as a Facebook offering. Rafat sources a recent Cowen & Company report that may have tempered investor enthusiasm:
“We expect the Classmates.com subscriber base to peak in the first half of 2008, followed by a steady decline to zero by 2025.”
Ouch.
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