GeoCities Inc, the Santa Monica, California-based community web site provider, has at long last filed with the Securities and Exchange Commission for an initial public offering of common stock at an undisclosed price. Under a ‘GCTY’ ticket, the company hopes to raise $72.45m for investment in infrastructure and working capital. On face value, it’s not the most attractive public float in history. Founded in December 1994, GeoCities has yet to post a profit and did not even begin generating revenue until mid-1996. It lost $8.9m last year and said in its filing documents that it expects losses for the foreseeable future. The GeoCities IPO is as long-expected as they come. Former CEO David Bohnett hinted at it last December. Rumors surged when Yahoo bought a $5m stake in GeoCities in January of this year (CI No 3,319) and again when Lycos Inc paid $58m for rival Tripod (CI No 3,340). The appointment of publisher Tom Evans to replace Bohnett as CEO (CI No 3,390) was widely interpreted as a pre- float reshuffle. The insiders, at least, seem bullish enough. Goldman, Sachs & Co, Donaldson, Lufkin & Jenrette Securities Corp and Hambrecht & Quist, which are underwriting the offering, have retained between them an over-allotment option to an undisclosed number of shares.
