YuMe prices IPO below expected range, shares begin trading today

|By:, SA News Editor

Online video ad network owner YuMe (YUME) has priced its 5.125M-share IPO at $9, well below an expected range of $12-$14.

That implies a market cap of $285M, or a relatively cheap 2.4x 2012 revenue.

The presence of tough competition from YouTube, Hulu, and private Brightroll, and the poor performance of online video ad tech provider Tremor Video (TRMR) since its June IPO (shares were priced at $10 and are now at $8.04), might have investors nervous.

On the flip side, AOL just bought online video ad tech provider Adap.tv for $405M, a move that could heighten M&A speculation regarding other independent video ad players. (S-1)

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