Wall Street Falls In Love With Two Media IPOs (NLSN, DMD)
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Two hot media IPOs have investors buzzing this morning with shares of both substantially higher.
Share of data and measurement company Nielsen Holdings (Nasdaq: NLSN) jumped to $25 per share after pricing its offering at $23, which was above the expected range of $20-$22. The current price suggests a market cap at $8.7 billion.
Demand Media, Inc. (NYSE: DMD) is trading to $23.45 after pricing its IPO at $17, above the $14-$16 expected range. The current price suggests a market cap of $1.9 billion. Demand Media is a leader in a new Internet-based model for the professional creation of high-quality, commercially valuable content at scale.
While this morning's stock performance is similar, the financial situation of the two companies varies greatly.
Nielsen Holdings sees FY10 revenues between $5,110 million and $5,130 million, an increase of between 6.3% and 6.7% from revenues of $4,808 million for the fiscal year ended December 31, 2009. Operating income, as calculated in accordance with GAAP, for the fiscal year ended December 31, 2010 is expected to be been between $715 million and $735 million. As of December 31, 2010, Nielsen had approximately $400 million of cash and cash equivalents and approximately $8,600 million of indebtedness outstanding.
For the nine months ended September 30, 2010, Demand Media reported revenue of $179 million, versus $198 million all of last year. For the nine months ended September 30, 2010 Demand Media reported a net loss of $6 million, down from a loss of $22 million for all of last year.
Share of data and measurement company Nielsen Holdings (Nasdaq: NLSN) jumped to $25 per share after pricing its offering at $23, which was above the expected range of $20-$22. The current price suggests a market cap at $8.7 billion.
Demand Media, Inc. (NYSE: DMD) is trading to $23.45 after pricing its IPO at $17, above the $14-$16 expected range. The current price suggests a market cap of $1.9 billion. Demand Media is a leader in a new Internet-based model for the professional creation of high-quality, commercially valuable content at scale.
While this morning's stock performance is similar, the financial situation of the two companies varies greatly.
Nielsen Holdings sees FY10 revenues between $5,110 million and $5,130 million, an increase of between 6.3% and 6.7% from revenues of $4,808 million for the fiscal year ended December 31, 2009. Operating income, as calculated in accordance with GAAP, for the fiscal year ended December 31, 2010 is expected to be been between $715 million and $735 million. As of December 31, 2010, Nielsen had approximately $400 million of cash and cash equivalents and approximately $8,600 million of indebtedness outstanding.
For the nine months ended September 30, 2010, Demand Media reported revenue of $179 million, versus $198 million all of last year. For the nine months ended September 30, 2010 Demand Media reported a net loss of $6 million, down from a loss of $22 million for all of last year.
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