OT: Oh darn
multichannel.com
Diva Yanks IPO
Redwood City, Calif. -- Diva Systems Corp. has withdrawn its proposed $75 million initial public offering, citing adverse market conditions.
In a document filed with the Securities and Exchange Commission late Monday, Diva said, "Current market conditions will not permit the sale of common stock at a price per share that would make a public offering viable at this time."
Diva filed for the IPO in May, and it had planned to use the proceeds for general corporate purposes, including working capital and to fund operating losses and capital expenditures.
Diva sells a hardware and software product that is installed at cable operators' headends and allows consumers to select pay-per-view movies and other programming whenever they want. In addition, the service has full VCR-like functionality, allowing users to pause, rewind, fast-forward and store video programming.
Diva is the second interactive-television-related company to pull an IPO this year. In August, ReplayTV Inc. withdrew its $119 million public offering, also citing adverse market conditions.
Once one of the hottest sectors in the entertainment industry, interactive-television stocks have been hit hard as investors have retreated toward more stable holdings.
Other publicly traded companies in the sector -- Liberate Technologies and TiVo Inc. -- have lost 87.7 percent and 90.9 percent of their value, respectively, since January. |
