The Next Tech IPOs: Living Social and Skullcandy?
Two tech initial public offerings that you may not have heard much about are now actively underway.
Living Social, the popular group-sales website that competes with Groupon, is seriously considering a public offering some time soon, and talking with bankers about the possibilities.
The headphone maker Skullcandy, which filed an amended IPO registration document the first of this month, plans to go on the road shortly after the July 4 holiday in pursuit of a $125 million offering, according to people familiar with the matter.
Living Social has yet to officially select underwriters, according to these same people, let alone file its S-1 with the Securities and Exchange Commission. But recent private investments valued it at $3 billion, according to a recent New York Times story, and its backers include Amazon and T. Rowe Price . As of April it had at least 26 million users, says the Times, giving it about a third the audience of Groupon. Living Social's revenue goal for this year is a reported $1 billion.
Skullcandy, which had at one point planned to launch its roadshow this week, just days after the euphoricPandora opening, is an interesting story as well.
Unlike many young tech companies that would like to go public, it had been largely profitable since 2006, and generated just over $1 million in net income during the first quarter. Still, it has faced a couple of headwinds, including a huge loss of nearly $10 million last year.
In addition, the recent resignation of Skullcandy's founder and CEO, Rick Alden, after what the company's public filings describe as complaints from employees and "improper workplace conduct."
Skullcandy spokeswoman had no comment on the matter.
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