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 (NASDAQ: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.