Launch Media Inc. –

SANTA MONICA, Calif. – Launch Media Inc., a digital music Web site, went public April 23, offering 3.5 million shares of common stock at $22 apiece. The stock priced well above the company’s $15 to $17 filing range.

Underwriters for the initial public offering include Hambrecht & Quist, Allen & Co. Inc. and NationsBanc Montgomery Securities L.L.C. The offering left 12 million shares of common stock outstanding.

Phoenix Partners, NBC Multimedia, General Electric Capital Corp., Intel Corp., Sony Music Entertainment, Lee Entertainment, Avalon Technology L.L.C., Allen & Co. Inc., Goran Enterprise Ltd., SOFTBANK Ventures Inc. and Digital Ventures were venture backers.

Launch Media Inc., founded in February 1994, is an Internet site and monthly CD-Rom service that markets new music. The site, www.launch.com, contains music news, artist interviews, concert reviews and music samples. In February, the company acquired Musicvideos.com, which allows launch.com to provide registered users with streaming music videos.

Proceeds, worth $74.8 million, will be used for product development, sales, brand promotion and general corporate purposes. The company has never paid cash dividends.

Richard Snyder, president of Avalon Investments, joined the board of directors in February 1998, followed by Thomas Hoegh, managing director of Arts Alliance, in June 1998.


Launch Media – Selected Financial

(in thousands, except per share data )

Pro forma Year Ended

Year Ended December 31,

1996 1997 1998 December 31, 1998 (unaudited)

Revenue 1,375 3,137 5,014 9,356

Net loss -4,488 -6,692 -13,419 -22,866

Net loss per share -5.37 -7.89 -16.36 -2.96