United Online Cancels Classmates IPO

United Online (UNTD) Wednesday morning announced that it is canceling its planned IPO for its Classmates Media IPO, which operates the Classmates.com social networking site. The company said that “proceeding with the initial public offering under current market conditions would not be in the best interests of its stockholders.” Which would seem to be a nice way of saying that IPO was attracting insufficient investor interest: clearly, Classmates is no Facebook.

United, which also operates the Internet service providers NetZero and Juno Online, said it will record transaction-related costs in the fourth quarter of $4.5 million to $5.5 million in connection with the withdrawn offering.

In pre-market trading Wednesday, United is down 90 cents, or 7.3%, at $11.42.

Comments

[oceandude]

Darn, I wanted to short Classmates!