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Technology Stocks : MPPP - MP3.com -- Ignore unavailable to you. Want to Upgrade?

To: Mike Hermann who wrote (282)	7/21/1999 3:02:00 PM
From: XINLING DENG	Respond to of 1116

From briefing: In The Pipeline : As many as 10 initial public offerings set to go out tomorrow. But given poor price action in the Internet group today, most of the deals will likely to be put on hold. One name with an above average chance of pricing tonight is MP3.com (MPPP). The company is a distributor of digital music over the Internet. Although MPPP does offer music for retail sale, the company derives the majority of its revenue from advertising... In most recent qtr, net revenue totaled less than $700,000. But expect MPPP's top-line to receive a major boost from the $150 mln advertising, promotion and marketing services agreement company signed earlier this month with Groupe Arnault. The relationship extends for three years. In June, Cox Interactive Media invested $45 million in the company and formed a joint venture to focus on providing downloadable music for affiliated radio stations across the U.S... MP3.com is planning to sell 12.3 mln shares at $24-$26 apiece, which is a premium of about 150% to the original offer range. The company has reserved 1.85 mln shares of stock for a "Friends and Family" allotment, which will create immediate overhead supply. But the market should have no problem absorbing the stock should these holders begin flipping on the first day. At the conclusion of the offering, Cox Interactive will own approx. 9.4% of the company. CEO Michael L. Robertson will hold a 37% stake... Potential long-term investors should keep in mind that MPPP uses stock to entice artists and companies into relationships. Already, the company has a a whopping 66.6 mln shares outstanding. - DS