Eying for a Loud IPO
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With the development of numerous streaming media technologies and the increased availability of high-speed access, the Internet is now a viable platform for delivery of audio and video media.
However, if you have ever been disappointed by the quality of the audio and video on the Internet, Loudeye Technologies should get your attention.
The price range on this IPO is $8-10 and the lead underwriter is Robertson Stephens. The proposed ticker symbol is LOUD.
Loudeye Technologies Inc. is a leading provider of Internet media infrastructure services and applications that create a complete solution for the media, entertainment and enterprise markets. Their proprietary technologies and processes enable high quality, high volume, platform neutral processing of significant quantities of digital media.
It is no surprise there has been an increased momentum of audio and video demand for the Internet. This demand is specifically highlighted by the presence of over 50 million MP3 capable users today (Forrester Research Inc.). Also, according to IDC, there were over 140 million video digital players downloaded by Internet users.
Loudeye has, so to speak, caught the "eye" of top entertainment enterprises, which include BMG Music, Disney Enterprises, Inc., Hewlett Packard, Microsoft Corp., and Sony Music Entertainment.
Loudeye was formed in August of 1997 under the name encoding.com, LLC and incorporated in March 1998 as encoding.com, Inc. In December 1999 they changed their name to Loudeye Technologies, Inc. They have grown their total revenues from $285,635 in 1998 to $2.6 million in 1999. Although, the company has an accumulated deficit of $12.6 million.
But the company has serious equity investors. They include AOL, CBS, Microsoft, NBC and Akamai. Moreover, Loudeye has been making acquisitions, such as for Alive.com (a digital media applications developer) and Valley media (a digital media clip service).
As more and more Internet users have access to high-speed modems, we will see a greater saturation of digital audio/video multimedia. Loudeye will be there to benefit.