The first time barnesandnoble.com made its attempt at going public it filed in September 1998 as Internet stocks were coming
off a hot July. The proceed talk then was $100 million.
www.nfbnet.org/files/newsletters/COMPNOTE.137::
9720644 http://shop.barnesandnoble.com/booksearch/isbnInquiry.asp?userid=5QR9KMZ News/Item/0,4,30450,00.html?st.ne.ni.lh Jesus2000.com Announces IPO
http://www.nfbnet.org/files/newsletters/COMPNOTE.137HOME |
This time around the book etailer may try and peek out into the market at a time when Internet stock offers have lost some of
their luster again, yet may seek $300 million.
E-Commerce News:::
But Morningstar.com IPO analyst George Nichols told the E-Commerce Times it is BarnesandNoble.com has named a new chief financial officer just days after it
http://www.ecommercetimes.com/perl/section/stockw/?init=92HOME |
xroads.virginia.edu/~UG02/yeung/CYOU/reading/reading3.txt::
Internet stocks such as barnesandnoble.com, Value America, DLJ Direct, eToys, iTurf, ZapMe! the most famous Internet IPO is Netscape s, whose offering
http://xroads.virginia.edu/~UG02/yeung/CYOU/reading/reading3.txtHOME |
It's not barnesandnoble's fault, blame it on the glut of Internet issues that filed, well over 100 in the past quarter alone. I've seen
the pattern before: a few Internet IPOs rocket out the gate and then every .com rushes to file.
That is often followed by a demand shortfall as investors become more astute at picking real companies from the wannabes--and there are plenty of wannabes on file now to go public.
Let's check the chapter and verse on barnesandnoble.com's IPO plans, which as you can see doesn't seem out of line with rival Amazon.com's multiple.
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Shares offered |
Refer-It.com: Your Directory Of Internet Associate, Referral ::
Youve seen the Barnesandnoble.com boxes on search engines and music sites. Patents and IPOs. Cynthia Aylward 4/2/2000. Product Director, Refer-it.com
http://www.refer-it.com/articles.aspHOME |
25 |
|
Target price |
$ 12.00 |
|
Proceeds |
$ 300.00 |
|
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BarnesAndNoble.com - Books, Used & Out Of Print, Textbooks, Childrens ::
New Software Improves Electronic Reading www.BarnesAndNNoble.com Experience Barnesandnoble.com Looks to Raise $200M in IPO - 3/29/1999
http://www.pogotek.com/Books/BarnesNoble/index.htmlHOME |
Technology News from Wired News::
Click here for NetDirect.com! Please Note: This is not the IPO Outlook. E-Biz. Med-Tech Center. The Linux Effect. Executive Summary. The Wired Index
http://www1.bell-labs.com/project/blast/press/wired14902.htmlHOME |
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|
Est. market value |
$1,666.67 |
|
|
|
|
1998 sales |
$ 61.83 |
|
Est. 1999 sales |
$ 100.00 |
|
|
|
|
99 revenue multiple |
17 |
|
Trailing |
27 |
|
Amazon's |
|
|
multiple |
20 |
all figures in millions except share price and multiple
I allocate a fairly aggressive growth rate on barnesandnoble.com's sales although I estimate barnesandnoble.com posting only
9% of the sales of Amazon this year. That highlights the fact that Amazon.com to me is more than a rival to
barnesandnoble.com. Amazon's greater product lines for sale give it girth at a time when girth may be all any of the two have or
could want.
Of the possible $300 million gross proceeds barnesandnoble.com has entered agreements with AOL to sell books on AOL.
That deal cost barnesandnoble.com $40 million in the years 1998-2001 with the payment schedule $8m in 1998, $10m in
1999, $11m in both years 2000 and 2001.
barnesandnoble.com also must pay MSN $3m as part of an agreement with Microsoft (plus a percentage of revenue). There's
also a $4.5m agreement with per year through 2000 with Lycos.
These deals and others, as well as the higher cost of marketing, are behind the IPO target to raise $300m vs. $100m.
Bertelsmann ons about 50% of barnesandnoble.com and has kicked in some capital to help the effort in a deal announced last
year.
Pros: Bertelsmann and Barnes & Noble (the parent company) both have substantial resources and capital to market and grow
the barnesandnoble.com service and brand.
Cons: Another spinoff stock from an established giant is not a pure play. Losses are a concern as barnesandnoble.com
spends heavily to try and catch even the tailwind of Amazon.com. barnesandnoble.com had $83 million loss in 1998.
Overall: if barnesandnoble.com can sustain a valuation in line with its sales to sales percentage of Amazon it could find a $2
billion market cap rather quickly after IPO, giving it 26% to run in. It may do better if the more conservative investors are
drawn to barnesandnoble.com's lineage and deep pocket partners/owners.
Until it goes though barnesandnoble.com's IPO is still a unfinished manuscript looking for a market receptive to its plot.
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