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Classmates is actually owned by United Online, which owns other businesses such as a French social networking website and loyalty rewards program.
Why you shouldn’t jump at this IPO
First, take a look at their SEC filing. If you are so inclined, find risk factors on page 11. Here are parts of what it says:
Failure to increase or maintain the number of paying subscribers for our social networking services would cause our business and financial results to suffer.
We may not be successful in increasing or maintaining the number of paying subscribers for our social networking services. Only a small percentage of members initially registering for our social networking services sign up for a paid subscription at the time of registration...
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