Student hub Chegg files for $150M IPO
Mimicking Workday and Trulia, the U.S. online education hub files -- secretly -- for an initial public offering.
Chegg, the 8-year-old California company that started as an educational textbook rental service but blossomed into an online learning hub, on Tuesday filed for an initial public offering with the U.S. Securities and Exchange Commission.
The company managed to do it quietly, thanks to a 2012 U.S. law that allows companies with under $1 billion in annual revenue to work confidentially with regulatory agencies ahead of the announcement.
Chegg is seeking $150 million for its educational platform, which offers (digital and printed) textbook rentals and sales, homework assistance, online courses, and scholarship services. The Santa Clara-based company, which has 614 employees, also has a leads-driven marketing businesses and a multifaceted advertising business.
The company, which is led by CEO Dan Rosensweig (who, many many years ago, served as CEO of ZDNet, prior to its acquisition by CNET Networks), wants to use the money to expand its services in a market in which Amazon, among others, competes.
It has raised $195 million to date from an array of investors, most notably Kleiner Perkins, Pinnacle Ventures, and Insight Venture Partners. Much of that money has been spent acquiring potential rivals.
Chegg also mentioned that it added four members to its board: Shutterfly CEO Jeffrey Housenbold; Facebook public policy VP Marne Levine; Kohlberg Kravis senior adviser Richard Sarnoff; and Jed York, chief executive of the San Francisco 49ers football team.
This story originally appeared as "Chegg files for IPO; seeks $150m" on ZDNet.