Classmates Media, the also-ran social network, pulled its IPO this morning. Why? According to management, “market conditions.” Here are the reasons for those crappy “market conditions”:
- Classmates is an ancient also-ran player in a sector that will likely evolve into winner-take-most Facebook play.
- Classmates charges for services that other sites (e.g., Facebook) already or will soon provide for free.
- Classmates is relatively tiny: 12 million uniques vs. Facebook’s 30 (in the US alone)
- Classmates counts as “registered users” people who haven’t visited the site in 8 years.
Our hedge-fund correspondent dismisses Classmates as a lipsticked pig. Opportunistic parent United Online (UNTD) will presumably look for another opportunity to unload some of Classmates stock, so in the event that it reappears, we recommend giving her analysis a read.
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