Filed under: Management, Value and lack thereof
One of the top IPOs for 2007 is comScore (NASDAQ: SCOR), which is up more than 71%. The firm provides sophisticated measurement tools for on the internet advertising, and has clients like Verizon (NYSE: VZ), Google (NASDAQ: GOOG), Yahoo! (NASDAQ: YHOO), and Microsoft (NASDAQ: MSFT).
However, this day comScore announced that it is canceling its follow-on equity offering. Why? According to the company’s press release, there is “unwillingness of management and other selling shareholders to sell under current capital market conditions.”
Actually, we’re seeing other signs of weakness for equity offerings. For example, CreditCards.com and Paradigm (which is a software company) have withdrawn their IPOs.
Most likely, these companies will go to private investors for funding. In fact, this might be an opportunity for private equity firms looking for deals.
Also, keep in mind that the IPO market has only a few weeks left — because of the Christmas holiday. In other words, don’t expect much action until next year.
Tom Taulli is the author of various books, including The Complete M&A Handbook
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