'Net shop to raise $300 mil in an IPO
HOLLYWOOD — Internet incubator Idealab! has acquired CD e-tailer Spun.com, the company announced Wednesday. The price was not disclosed.
Spun.com allows users to buy and sell new and used CDs; customers can also gain credit for CDs they trade in. Company, previously based in Chicago, moved into Idealab!’s offices in Pasadena several weeks ago.
“Spun.com delivers an innovative and unique consumer experience,” said Bill Gross, founder and chairman of Idealab! “The company’s innovative business model, coupled with the site’s fast-paced buying, trading and selling environment and extensive music search features, provides extensive, real-time options to consumers. Spun.com is a solid addition to the Idealab! network.”
Spun.com was founded in November 1998 by brothers Andy and Steve Grundy. Andy Grundy will remain with the company as prexy, while Steve will serve as senior veep and chief technical officer. Since teaming up with Idealab!, Spun.com has grown from eight to 35 employees.
More than coin
“One thing that was very appealing to us was that it’s not just money; Idealab! also gives support,” Andy Grundy said. “With straight venture capital, you hear things like ‘That won’t work because of this.’ With Idealab!, it was, ‘Cool, how can we make this thing go?’ ”
Idealab! has hatched a bevy of e-commerce companies, including eToys and Cooking.com. Entertainment site Z.com is being developed with the company’s resources. Idealab! recently filed a notification with the Securities and Exchange Commission that it seeks to raise $300 million in an initial public offering. In its most recent round of financing, Idealab! raised $1 billion.