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Technology Stocks : ZD Inc., Ziff-Davis (ZD)
ZD 33.04+0.6%Dec 1 3:59 PM EST

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To: Bouf who wrote (507)3/17/1999 6:35:00 PM
From: Minos  Read Replies (1) of 855
 
Bouf,

I love this stock too, just wish I owned more. Seriously, though, I am trying to get my arms around the value that a successful IPO could add to the price of our ZD shares.

Consider that ZDNET offering will be ~ 10 mm share, and it is anticipated at the initial public offering price will be between $11.00 and $13.00 per share (which means nothing because the price will almost certainly be raised, then bid-up wildly).

CNET currently has 34 mm shares outstanding, @ $94 per share giving it a market cap of $3.2 billion

Shouldn't ZDNET and CNET be similarly valued given page views, traffic, et al.?

Based on the percentage of ZDNET that ZD will retain, what does this do to the share price of ZD? Common all you corporate finance experts...help me out here.

Also, does anybody expect a DBCC-like dive after the IPO???

-Minos

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