Angie’s List Aims for Sick Valuation, IACI Could Jolt Higher
Angie’s List (ANGI) — which launched in 1995 — has just set the terms for its IPO. The list offers consumers a way to review and rate doctors, contractors, and service companies on the Web.
The company revealed it aims to raise as much as $131.4 million in the offering and has priced its IPO in the range of $11 to $13 per share. The company will list on the NASDAQ (NASDAQ:NDAQ) under the symbol “ANGI”.
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At the high end of the range, Angie’s List would be valued at nearly $700 million. To date, Angie’s List has raised nearly $100 million from Battery Ventures, T. Rowe Price (NASDAQ:TROW), City Investment Group, Cardinal Ventures, and others. The site now has more than 1 million paid memberships (up from 820,000).
This news could be a nice boost for IAC/InterActiveCorp (NASDAQ:IACI). InterActiveCorp has a division called Service Magic that competes with Angie’s List, yet is larger and actually profitable. IACI could catch some analyst upgrades as Wall Street updates their models to account for a Service Magic valuation at least equal to Angie’s List.
TechCrunch mined out more data from Angie’s List S-1: “Angie’s List incurred marketing expenses of $30.2 million and $48 million in 2010 and the nine months ended September 30, 2011, respectively. In 2010 and the nine months ended September 30, 2011, the company’s revenue was $59.0 million and $62.6 million, respectively. In the same periods, Angie’s net loss was $27.2 million and $43.2 million. Angie’s List has incurred net losses its start and had an accumulated deficit of $160.6 million as of September 30, 2011.”
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