RealTime IT News

GoTo.com Hopes to Raise $64 Million in IPO

GoTo.com Inc., a Web search service that auctions off search placement results to advertisers, said it hopes to raise $64 million for marketing and other expenses through an initial public offering.

The Pasadena, CA-based company -- a product of idealab!, an Internet venture capital investment firm headed by William Gross -- was founded September 1997 and launched last June. 24/7 Media Inc. handles ad repping.

GoTo.com generated revenue of $580,000 in the fourth quarter last year, improving on $185,000 of revenue in the previous quarter. Its net loss widened to $6.2 million in the fourth quarter from $5.1 million in the third quarter last year, according to the company's filing.

The company's top shareholder with 24 percent is idealab!. Other venture investors include Draper Fisher Jurvetson, Moore Capital Management Inc. and Global Retail Partners LP.

The company hired Donaldson, Lufkin & Jenrette Securities Corp. to underwrite the Nasdaq stock sale, with Salomon Smith Barney Inc. and Thomas Weisel Partners LLC.