IPOs/Recent Issues – ARTISTDIRECT –

Encino, Calif.

Went public 3/28/2000 at $12 apiece

Filing Range:5 mil. shares @ $10 to $12

Shares Outstanding:37.3 mil. shares

Underwriters:Morgan Stanley Dean Witter

Bear Stearns/Deutsche Banc Alex. Brown


(Data in $ millions)


12/98 12/99

Total Revenue $4.58 $10.27

Net Loss -6.3 -57.8

The Company:

Founded in July 1999, ARTISTdirect is an online music company that connects artists directly with their fans worldwide. The company provides music entertainment through its ARTISTdirect Network, an integrated network of Web sites offering multimedia content, music news and information, community around shared music interests, and music-related commerce. As of Dec. 31, 1999, ARTISTdirect featured 79 unique, artist-owned ARTISTchannels, and has signed agreements to launch channels with an additional 26 artists. The ARTISTdirect Network also features the Ultimate Band List, a music search engine with more than 95,000 artists, and iMusic, an online community where fans exchange music interests and commentary. During December 1999, users viewed more than 60 million pages over the ARTISTdirect Network. ARTISTchannels includes: Backstreet Boys, Def Leppard, Ozzy Osbourne, Beastie Boys, Kenny G, Tom Petty, Beck, Korn, Pink Floyd, blink-182 and Limp Bizkit among others. The company also operates a music talent agency, the ARTISTdirect Agency, and a traditional record label, Kneeling Elephant Records. The company generates revenue from music-related electronic commerce, online advertising and sponsorships, royalties on record sales and talent agency commissions.


Estimated net proceeds of $49.5 million will be used for advertising and promotion content production and Web site development, to repay debt and general corporate purposes, including working capital.

Venture Backers:

Constellation Venture Capital LP, Chase Capital Partners, Universal Music Group Inc., Cisneros Television Group Inc., BMG Music d/b/a BMG Entertainment, Sony Music Entertainment, Psilos Group Investors LLC, Lenard Holdings LP, Artistdirect Investors LLC

Board Members:

Marc Geiger

Donald Muller

Keith Yokomoto

Carlos Cisneros

Clifford Friedman

Don Khosrowshahi

Stephen Krupa

Allen Lenard

Rick Rubin