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Technology Stocks : Audio and Radio on the Internet- NAVR -- Ignore unavailable to you. Want to Upgrade?

To: Bruce Denney who wrote (20792)	7/26/1999 8:41:00 AM
From: Matt Davis	Read Replies (3) \| Respond to of 27722

Thanks for the article, BD. Looks like we are destined to stay here longer. Published Monday, July 26, 1999 NetRadio unlikely to go public before September Eric Wieffering / Star Tribune There's Internet time, and there's NetRadio time. The fledgling Minneapolis-based Internet broadcaster, which registered in March to sell stock to the public, is interviewing new investment bankers and is unlikely to go public before September, said two sources familiar with the situation. Eric Paulson, chairman of NetRadio and CEO of its parent company, New Hope-based Navarre Corp., did not return phone calls. But sources say Paulson is looking to replace Everen Securities Inc. as the lead underwriter of NetRadio's public offering. NetRadio has said it hopes to raise up to $43.3 million through an initial public offering of 3.3 million shares, priced at $11 to $13. But little has occurred since the company filed an amended registration statement in late May. Sources blame the delay on the pending acquisition of Everen by First Union Corp., which has led to a defection of Everen's sales force. An Everen spokesman confirmed that the company has yet to prepare a final draft prospectus for NetRadio. Nor has it scheduled a "road show," a two-week period during which NetRadio management would meet with analysts and portfolio managers to drum up interest in the pending IPO. In June, Paulson had back surgery and was out of the office for a month. It's unclear how much the delay will dim investor interest in NetRadio, which broadcasts recorded music on 120 channels and sells compact discs from its site. The market for new Internet issues, after peaking in March, has been more discriminating, with fewer companies seeing big, first-day gains in their stock prices. "We're seeing a shift in interest from companies doing business on the Web to companies that are helping build the Web," said Ken Fleming, an analyst for Renaissance Capital, a New York City firm that monitors new issues. So called "content" companies such as NetRadio, which rely heavily on advertising revenue, are facing more scrutiny, said Safa Rashtchy, a Piper Jaffray analyst. Investors want to see strong traffic, leadership in the sector and strategic partners, such as traditional media outlets, that can drive traffic to the site. NetRadio boasts high traffic figures on its site, but the company has yet to translate those numbers into meaningful advertising or product revenue. It lost $2.6 million in the first three months of 1999 on sales of $171,799. Navarre, in reporting its results for the quarter ended June 30, said NetRadio had an operating loss of $2.2 million. Still, NetRadio competes in a hot market sector. Investors eagerly bid up the shares of Liquid Audio, Musicmaker.com and MP3.com, three music companies that came public in recent weeks. And earlier this summer, America Online paid $400 million to acquire Internet broadcaster Spinner.com. "A lot of people think music could be the next killer app [application] on the Internet," Rashtchy said.

To: Bruce Denney who wrote (20792)	7/26/1999 8:51:00 AM
From: Matt Davis	Respond to of 27722

I wonder which statement we could trust. Paulson:>>>Paulson also stated that the Company has strengthened the investment banking team managing the NetRadio IPO and is continuing to move forward with the offering.>>>> Star Tribune:>>>>The fledgling Minneapolis-based Internet broadcaster, which registered in March to sell stock to the public, is interviewing new investment bankers and is unlikely to go public before September, said two sources familiar with the situation.>>>>

To: Bruce Denney who wrote (20792)	7/26/1999 8:53:00 AM
From: KM	Read Replies (1) \| Respond to of 27722

Thanks for the info. I'll be booting mine today.

To: Bruce Denney who wrote (20792)	7/26/1999 3:56:00 PM
From: country bob	Respond to of 27722

Hi, y'all! Not the greatest of news, but not totally unexpected! I knew back in May that if we didn't see an IPO by Memorial day, there was a good chance that we would have to wait until Labor Day. I hoped it would be sooner, but it was just wishful thinking.Hopefully something good will come out of this (like a stronger underwriter), but it is apparent that NAVR has been stringing us along all the while! Whatever credibility with the investing public they had left is now gone(and I'm sure they realize it) so look for NETR to be sold. cb