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To: Urlman who wrote (738)	7/21/1998 8:55:00 PM
From: Nick	Read Replies (2) \| Respond to of 19700

GeoCities IPO Values Company at as Much as $429 Mln (Repeat) Bloomberg News July 21, 1998, 3:11 p.m. PT GeoCities IPO Values Company at as Much as $429 Mln (Repeat) (Repeats to delete extraneous word in first paragraph) Washington, July 21 (Bloomberg) -- GeoCities, the host for advertising-supported Internet ''communities,'' expects to sell 4.75 million shares at $12 to $14 each in its widely anticipated initial public offering. The Santa Monica, California-based company expects to have 30.66 million shares outstanding after the IPO, according to a filing with the U.S. Securities and Exchange Commission. A per- share price of $14 implies a market value of as much as $429 million. Analysts expect the IPO to be a hit, as investors' enthusiasm for Internet stocks continues to soar. The debut of Broadcast.com Inc. -- its shares more tripled on Friday, the first day of trading -- was the best opening performance ever by a U.S. IPO. ''If Broadcast.com can do that well, I can't even imagine what GeoCities can do,'' said Tom Taulli, research director for IPOMonitor.com in Los Angeles. ''This might just blow everyone away.'' When it first filed with the SEC last month, GeoCities didn't say how many shares it would sell or how much it hoped to get. The size of the offering and the expected price range for shares were disclosed in an amended SEC registration today. GeoCities hosts groups of personal Web sites where users with similar interests can build and visit related sites. The company has let more than 1.9 million ''homesteaders'' set up free Web sites and collects money from advertisers that target visitors to the specific ''neighborhoods.'' Keys to Success GeoCities is one of the only Top 10 sites on the World Wide Web that isn't yet publicly traded, Taulli said. Also, the IPO has a strong underwriting team led by Goldman, Sachs & Co., good management and big backers, he said. ''One thing about the Internet, I can't see it slowing down,'' Taulli said. ''The impetus for the mania will be there for a while.'' GeoCities' largest investors include a unit of CMG Information Services Inc., which will own almost 31 percent of the company after the IPO. Softbank Holdings Inc., the U.S. unit of Japan's Softbank Corp., a software wholesaler, will own almost 30 percent. In April, GeoCities laid the foundation for the IPO by hiring media veteran Thomas Evans as chief executive to replace David Bohnett, who started the company four years ago. Evans was president and publisher of U.S. News & World Report since 1991. GeoCities said Evans' mandate was to bring the company to profitability and take it public this year. Bohnett remains chairman and will own 2.48 million shares after the IPO -- an 8 percent stake. More than 90 companies promote products on the GeoCities' Internet sites. The company also has partnerships with Internet retailers, including bookseller Amazon.com Inc. and CDnow Inc., the music vendor. 'Revenue Potential' ''If those deals start taking off, we'll see it in the revenue streams,'' said James Preissler, an analyst with PaineWebber Inc. ''It could be a huge revenue potential.'' As with many Internet companies, GeoCities isn't making money and ''anticipates that it will incur net losses for the foreseeable future,'' the filing said. For the six months ended June 30, GeoCities reported a net loss of $7.3 million, widening a loss of $3.6 million in the same period a year earlier, according to the amended SEC filing. Revenue rose to $5.5 million, from $1.6 million. Still, the outlook for the IPO is strong, analysts agreed. ''I think it will be very well received,'' said Kate Delhagen, an analyst with Forrester Research Inc. ''So many people are looking at the Internet as an investment opportunity and wondering if they missed it with companies like Yahoo! Inc. Here's another wave.'' GeoCities expects to raise $56.4 million after expenses, money that will be used to enhance the company's Web site and computer systems and to expand sales and marketing efforts. Officials with GeoCities couldn't be reached for comment. The company's original filing with the SEC came a day after it agreed to settle federal charges about the way it collects and uses personal information on children. The proposed settlement with the U.S. Federal Trade Commission marked the first such case about children's privacy over the Internet. Under the proposed settlement, GeoCities would not be fined and would not admit any wrongdoing. It would have to get parental permission before collecting information from kids under the age of 13, more clearly explain how that data would be used, and give consumers the ability to delete their personal information from GeoCities' database. Donaldson, Lufkin & Jenrette Securities Corp. and Hambrecht & Quist will assist Goldman Sachs on the GeoCities IPO. The company expects to have its shares trade on the Nasdaq Stock Market under the symbol GCTY. GeoCities' Web site is located at www.geocities.com. --Alan M. Wolf in Washington (202) 624-1880/bd