Classmates IPO Commentary - Why Classmates.com Sucks

United Online decided to halt the IPO of Classmates Media, citing unfavorable market conditions. I find this reasoning highly dubious, considering the social networking buzz is at the peak of the bubble. Furthermore, the IPO of Classmates would give investors who want to invest in social networking  the only pure play on the industry.

This is just speculation on my part, but at this point, I highly doubt Classmates will IPO ever. I don’t see the market for a Classmates IPO getting better. First, if Facebook IPOs, investors who want to invest in social networking will buy Facebook and ignore Classmates. Furthermore, I personally believe these social networking sites are greatly overvalued right now, so if anything, valuations should go down in the future.

I’ll keep this blog open in case Classmates decides to IPO eventually and to cover other major Classmates-related news, but I don’t expect to be making many posts in the future.

From what I can tell, this is the week of the IPO. Here’s an interesting article about the Classmates IPO.