United Online (NASDAQ:UNTD), a company perhaps best known as the parent to the low-cost Juno and NetZero dial-up Internet service provider brands, Monday filed with the SEC for IPO of its Classmates Media (CLAS) unit, the parent of the Classmates.com social networking site and the Mypoints.com online loyalty marketing service.
Clearly, United Online sees an opportunity to cash in on the social networking trend, which has created so much buzz around sites like Facebook and LinkedIn. According to the S-1 filing, Classmates.com at June 30 had 50 million registered users, of which 2.7 million were paid.
United Online will maintain a majority interest in the company after the IPO, although details were not disclosed in the filing. Classmates Media had revenue for the quarter ended March 31 of $42.4 million, about evenly split between ad revenue and billable services; in 2006, the company had pro forma revenue, adjusted for the acquisition of MyPoints, of $152.1 million.