Local Matters IPO Announced

[bakedjake]

A Denver software firm headed by the founder of MapQuest wants to sell about $57 million of stock in an initial public offering.

Local Matters Inc. focuses on local Internet search, technology that enables consumers to use Internet directories to find restaurants, stores and other businesses in a particular area.

The 187-employee Local Matters, which also has offices in Florida, Louisiana and Utah, lost $18.6 million on revenues of $8.5 million in 2005.

As of Dec. 31, the company had an accumulated deficit of nearly $90 million, according to the filing.

[rockymountainnews.com...]

[Chicago]

Looks like our friends need to raise more money.

[Kirby]

Or figure out how to monetize local search.

[paybacksa]

or maybe it's just a Bubble attempt. "Wow look we have traffic..so ignore our debt and losing business operations and risk and fund us!"

[thaedge]

Its late but I can still do math I think.

90 - 57 = 33 million in debt and rising.

So what will they do if the continue to bleed some 10 million or 20 million a year? Sell more shares in 2 years I guess.

[skippy]

But Local Matters also said it believes it's well positioned in the market and noted that its Area-Guides.net received more than 2.7 million unique visitors per month in 2005.

Hope Area-Guides.net is a typo in the article as it is for sale.

[thaedge]

2.7 million is grand if you can monetize them. Myspace has 35+ million a month and is scratching their head. YouTube is doing the same.

[Chicago]

its areaguides.net, a site recently purchased for 19MM by LMI