Phase2Media Withdraws $57 Million IPO
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With the public market spurning Internet stocks in general -- and online advertising plays specifically -- Silicon Alley ad sales and marketing shop Phase2Media Inc. has pulled plans for a $57 million IPO.
Last March, in a move best described as surprising and bold, Phase2Media announced plans to go public, registering with the SEC to offer up to $57.5 million worth of stock.
The company had hoped that the Nasdaq's early correction was a temporary setback. But, more than a year later, the company pulled its filing yesterday, lamenting the state of the market.
At the time of the filing, the company did not disclose an offering price range. The filing was for the stock to be traded on the Nasdaq market under the symbol PTWO.
The lead underwriter of the IPO was listed as Robertson Stephens, with Chase H&Q, Thomas Weisel Partners and DLJdirect acting as co-managers.
As of March 2000, Phase2Media recorded net losses for the first quarter of $3.3 million (54 cents per share) on revenues of $5.2 million. The previous quarter, the company lost $5.8 million (58 cents per share) on revenues of $4.4 million. At the time, the company said it had $12.9 million in hand.
Early last year, Phase2Media closed a third round of venture funding of $18 million, led by GE Equity. Other investors include Vector Capital, Hachette Filipacchi Media and Starwood Capital Group, whose stakes have helped the company raise over $30 million since its inception.
Phase2Media is known for its personalized approach to individual site representation. For example, the company deploys a dedicated sales staff for big name clients like Hachette Filipacchi and Prodigy.
Other clients include the Elle Interactive Network and Maxim Magazine Online. In partnership with BMCMedia of Australia, Phase2Media also owned the North American and European rights to sell advertising for the International Olympic Committee's official Web site.