Could Social Media Be the Salvation for IPOs?

October 15, 2010

October 15, 2010 (Mountain View, CA) – Mark Stevens, Co-Chair of the Private Equity Group at Fenwick & West LLP, was recently quoted in an AmLawDaily article "Could Social Media Be the Salvation for IPOs?"

While the forecast for initial public offerings may be uncertain, there is an area showing promise and growth potential, according to Mark Stevens. "The IPO market has a heartbeat, but it's not racing," says Stevens, "and while that's an improvement from a few years ago, it's not that much. But there are growth opportunities out there." Stevens believes that social media and entertainment IPOs could be the next big thing for corporate securities lawyers.

Additionally, "There's an overall trend in favor of online media, which dipped during the downturn in its growth rate, but not in absolute dollars," states Stevens. "Now it's coming back, especially online video and social media. There's a confluence of a number of trends that indicate growth in audience and revenues, which is a good combination for the public market that's looking for the next generation of growth companies."

Stevens says that an added bonus for social media and online entertainment IPOs is the fact that there aren't many companies in the field that are already public. Still, he adds, the category presents complications for new investors. "Anything complicated is good for lawyers."

To read the AmLawDaily article in its entirety, click here.