Here are the quick details:
Proposed ticker: TTGT
Price range: $12-$14 (I use $13 for my assumptions)
Market Cap: $507m
Cash: $105m (post IPO)
Enterprise Value: $421m
'05 EBITDA: $13m
'06 EBITDA: $20m (+51%)
'07 EBITDA: $26m (+30%) - my rough estimate
'07 EV/EBITDA: 16x
This compares to CNET's '07 EV/EBITDA of 14x, growing EBITDA roughly 20%. The valuation seems reasonable but not overly enticing.
On the positive side, both TTGT and CNET may be acquisition targets for their high quality original content (see Amazon's (AMZN) acquisition of DPReviews yesterday as an example of M&A in the digital content sector). On the negative side, both firms have a heavy concentration of technology advertisers and are subject to fluctuations in the IT ad market.
The offering will be for 7.7m shares and will raise roughly $75m to be used to pay down debt, for working capital and for general business use. Morgan Stanley and Lehman Brothers will be the lead underwriters.
I think TTGT will have a solid but not spectacular IPO.