drops IPO plan

Cyberbiz Brief

Citing trepidation among investors about companies that deal in Internet content, pay-per-view Netcaster has scuttled plans for an initial public offering on the Nasdaq.

“The company’s board of directors does not believe that the public markets would favorably respond to an initial public offering … at this time,” the company said in a Securities and Exchange Commission filing.

While decision follows on the heels of flameouts at and Pseudo Networks, Sightsound CEO Scott Sander draws a sharp distinction between originators of online content, which tend to incur heavy production and promotion expenses, and his company.

“We built a distribution system; we are the technology company,” he said in an earlier interview. Asking Sightsound about content production “is sort of like asking UPS what’s inside the brown boxes.”

Sightsound spokeswoman Jennifer Pesci said the company has no specific plans to reinstate the offering and said that the withdrawal of the application, which deprives Sightsound of working capital that would have been generated from an IPO, will not affect the company’s capital spending plans going forward.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Digital News from Variety