Wired delays IPO as market slides
Wired Ventures has reportedly decided to delay its initial public offering until October.
Tony Perkins, editor of Red Herring, discussed the delay on the CNNfn cable television show today. Another editor at the magazine speculated that the delay was the result of Wired's over-valuation of its stock, as well as a recent general downturn in technology stocks.
"Although we can't be certain, the historically overvalued Wired IPO looks to be in trouble," said Jason Pontin, managing editor of Red Herring.
The company filed its registration statement for the IPO with the Securities and Exchange Commission on May 30. According to the filing, Wired intended to offer 6.3 million shares at a maximum price of $12 each, according to the company's prospectus.
Founded in January 1993, Wired Ventures publishes Wired magazine, a periodical whose self-described mission is "to cover the Digital Revolution" and that many consider the hottest new publication on the market. Wired also owns the magazine's online sibling HotWired, the search engine HotBot, and the HardWired book publishing company.
In addition, Wired is developing a television show called Netizen for the soon-to-launch MSNBC cable channel. But the bulk of the company's revenue comes from flagship Wired magazine, which had attracted more than 300,000 subscribers by the end of April.
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