Internet Brands has kept us busy lately documenting all of its buyout deals. Now it has filed for a $100M Nasdaq IPO. We like Internet Brands but the timing seems bad for an IPO given its current slow down in revenue growth. Orbitz IPO was hurt over the same issue and it would have seemed prudent to wait a quarter or two to come out with some momentum.
Internet Brands was founded in 1998 as CarsDirect.com and added the new parent company name of Internet Brands in May 2005. Internet Brands was funded by Idealab. Idealab held 37.52% of the company's shares before the offering. William Gross also held 37.52%.
Internet Brands is strong in real estate, cars, and travel - all sectors that advertisers prize. It recently bought the top bulletin board platform vBulliten and has started buying sites that are built on vBulletin, so long as they are in the core categories.
Internet Brands had ad revenues of $85M in 2006. Its Q107 revenues declined to $19.1M, compared to $21.9M in Q106. The company blames a slow down in revenue, particularly from its auto category.
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