REDWOOD CITY, Calif. – Liquid Audio Inc., a provider of digital music delivery over the Internet, went public July 8, offering 4.2 million shares at $15 apiece. The company’s stock priced above its $10 to $12 filing range.
Underwritten by Lehman Brothers, BancBoston Robertson Stephens and U.S. Bancorp Piper Jaffray, the initial public offering left 18.02 million shares outstanding.
Venture backers included Hummer Winblad Venture Partners, Intel Corp., Vulcan Ventures Inc., Metromedia Co. and The Phoenix Partners.
Liquid Audio provides an open platform that enables the digital delivery of music over the Internet. The company’s software products and services give artists, record companies, Web sites and retailers the ability to create, syndicate and sell recorded music. Consumers can preview and purchase downloaded music through the company’s catalog of syndicated music.
The company will use the estimated $57.64 million in proceeds from the offering for general corporate purposes. The company has never been profitable, losing $8.5 million in 1998 and $6.2 million in 1997.
Ann Winblad, a general partner at Hummer Winblad, joined the company’s board of directors in May 1996, followed by Eric Robison, a business development associate for Vulcan Ventures Inc., who joined in April.
Liquid Audio – Selected Financial
(in thousands, except per share data)
January 30, 1996 (inception) Three Months Ended
to December 31, Year Ended December 31, March 31,
1996 1997 1998 1998 1999
Total Net Revenue – 256 2,803 224 531
Net income (loss) -1,264 -6,216 -8,539 -1,985 -4,143
Net income (loss) per share -14.93 -4.95 -3.60 -0.99 -1.39