Would You Buy Shares In Ashley Madison?

MARKETWATCH - Apr 23 - Avid Life Media, the parent company of Ashley Madison, hopes to raise $200M in an IPO in London later this year. Ashley Madison makes up ~70% of Avid's $150M annual revenue, says Noel Biderman, CEO of the site. AM alone has ~33M members worldwide with 2.3M active users. The IPO plans may be mere flirtation with the media or a way to attract a suitor keen to invest. AM has little direct competition. "The entire business is built on the premise that few will follow," says Mark Brooks, a dating-industry analyst and the editor of Online Personals Watch. "It’s simultaneously brilliant and despicable. It gets people talking, which is also good for business."

by Quentin Fottrell
See full article at MarketWatch

Mark Brooks: I can't quite see investors voting this one up. But I could be very wrong. It will be a fascinating experiment in public acceptance. Is philandering and lying in vogue? Will it be palatable in the financial community. God, I really hope not. As much as it might be a part of daily life for many. I think we need to be more honest and open. I refuse to accept that society accepts 'cheating.' It seems to be the antithesis of where trusting, loving relationships that produce loving families, should end up. Noel knows this. But money is blinding, and plentiful in the philanderers niche.

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[Wanify]

Investors don't care about morals. They care about making money and at the end of the day Ashley Madison makes money.

[Marc Lesnick]

On Wall Street, the adult business is generally where underwriters draw the line. That's why you see next to nothing on the NYSE that is adult oriented. Ashley Madison falls into a different area. While its not adult, it has strong moral and ethical issues associated with it. If underwriters in the UK are willing to take it on, then the finances of the company are what will matter in terms of the stocks performance. Continued growth and strong profits should produce a high valued stock. I've met the executives of AM at iDate conferences many-a-time. There is no doubt in my mind they are extremely astute business people at the end of the day.

[Glenn G. Millar - VP Sales and Marketing White Label Dating]

Yes, Wall Street shies away from anything unethical or where anyone is getting screwed . . . I almost wrote that with a straight face.

[Mark Brooks]

Its not going to attract institutional investors. Thats a severe shortfall in the underpinnings of a top tier stock and will increase its volatility. But Ashley Madison is used to being a wild ride I guess.