Citing trepidation among investors about companies that deal in Internet content, pay-per-view Netcaster Sightsound.com 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 Pop.com 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.