IPO Filing: Synacor.. A Web 2.0 Portal Platform (SYNC)

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A company called Synacor, Inc. filed to come public via an IPO last night under the proposed ticker of "SYNC" on NASDAQ.  For filing purposes, the company listed a sale of up to $86.25 million for registration purposes.  The lead underwriters are listed as Deutsche Bank and Bear Stearns; and co-managers are listed as Thomas Weisel Partners, Canaccord Adams, and Montgomery & Co.

Synacor is an interesting company, at least if you are into any aspect of how broadband affects online content creation and maintenance.  Its platform is used to create customized Internet portals and includes integration infrastructure, subscriber personalization capabilities, a content management and delivery system and a customer-branded video player and toolbar.  It also aggregates free and paid digital content and value-added services, including video from third parties.  Its customers are primarily high-speed ISP’s and broadband providers: Charter Communications, Inc., EarthLink, Inc., Embarq Corporation, Time Warner Cable Inc., United Online, Inc. and Virgin Media Limited.  The company estimates some 21 million broadband users, 5 million narrowband Internet subscribers, and roughly 33 million household television subscribers in the U.S. and the U.K.

Sales were only 2.38 million in 2004.  By 2006 it generated over $26 million in revenues and a net loss of $2.25 million.  Sales grew to $8.677 million in Q1 2007 (up from $5.86 million in Q1 2006) and the losses were carried as ($297,000) on the books. 

This company will be quite interesting to watch, because as it adds more and key customers it means that the competition for eyeballs and interactive services will be increasing. 

Jon C. Ogg
August 3, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he does not own securities in the companies he covers.