Ashley Madison Might Ditch Plans For London IPO

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Ashley Madison has said it may drop plans to IPO, three months after announcing intentions to go public.

In April, the extra-marital dating site said it was looking to raise $200m from investors to go public on the London Stock Exchange.

However now, CEO and founder Noel Biderman has told Business Insider that they may ditch these plans, having assessed its options as a company.

In an interview, Biderman said:

“There is no change in securing a bank to lead an IPO but right now we are looking and assessing two different strategies. We can do a straight-up IPO, but since the news of the potential launch was made, we got a lot of attention and this has garnered a range of further options.

“With the kind of income we generated over the last eight years and if we remain as profitable as we are now over the next eight years, it may be in our current shareholders’ interest to for us to use an investment vehicle to give them set dividends. For example, investing $US1 a year, would give you $US1 in return the following year, rather than investing $US1 and potentially getting $US5 some time down the road.

“We are not a typical tech company and we have a subscriptions model. We never wanted to launch an IPO because we had to, or to get funding to keep the lights on, we just thought it was one of the best options for expanding and giving good returns to shareholders. We generate tens of millions in cash flows.”

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In April, the Avid Life Media CEO said part of the decision to IPO was to try and attract world class talent by going public, to help push the growth of the company.

However Biderman recently revealed the company are still looking to secure a book runner for the stock market listing, and would make a final decision about the IPO in August.

Despite this, Ashley Madison said it has seen a 20% increase in subscriptions since the announcement.

The site had previously attempted an IPO on the Toronto Stock Exchange in 2010, however it failed when the investment bank GMP pulled out.

Last month, Avid Life Media brand ManCrunch released a new app that lets users live video chat with other gay singles around the world.