PASADENA, Calif. – GoTo.com Inc., an Internet search engine, held an initial public offering June 18. The company offered 6 million shares at $15 apiece, above its $13 to $14 filing range.
Donaldson, Lufkin & Jenrette Securities Corp., Thomas Weisel Partners, DLJdirect and Salomon Smith Barney Holdings Inc. underwrote the initial public offering, which left 44.40 million shares outstanding.
There were no selling shareholders. GoTo.com raised a total of $53.3 million in venture capital since its incubation at idealab! in 1998. Since then, the company has received venture funding from Draper Fisher Jurvetson, Moore Capital Management Inc. and Global Retail Partners.
GoTo.com eliminates the randomness of online searches by auctioning off company listings to advertisers. The listings are ranked in the order of the highest bids, which represent the amount each advertiser is willing to pay GoTo.com for each customer click-through.
The estimated $90 million in proceeds generated by the IPO will be used to bankroll upgrades to transaction processing systems and network infrastructure, as well as additional marketing and sales efforts.
The company lost $14.0 million in 1998.
Robert Kavner, a general partner of idealab!, has served as chairman of the company’s board of directors since November 1998. His colleagues William Gross, founder, chairman and chief executive of the incubator, and William Elkus, managing director of idealab! Capital Partners, were named to the board at the company’s inception in 1988 and March of this year, respectively. Timothy Draper, managing director of Draper Fisher Jurvetson, joined the board in June 1998, followed by Alan Colner, managing director of private equity investments at Moore Capital, and Linda Faye Levinson, a principal at Global Retail Partners, in November 1998.
GoTo.com – Selected Financial
(in thousands, except per share data)
Twelve Months Ended Three Months Ended
December 31, 1998 March 31, 1998 June 30, 1998 September 30, 1998 December 31, 1998 March 31, 1999
Revenue 822 38 19 185 580 1,451
Net loss -14,023 -724 -1,693 -5,307 -6,299 -7,360
Net loss per share -1.36 -0.68