McAfee Sets Terms of IPO, Hoping to Raise Up to $682 Million

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McAfee, the cybersecurity company founded by tech eccentric John McAfee, has set the terms for its initial public offering, hoping to raise as much as $682 million in a deal that could value the company at $3.64 billion.

McAfee, based in San Jose, plans to sell 37 million shares at a price of $19 to $22 each. The stock will trade on Nasdaq, with the ticker symbol MCFE, the company said in an SEC filing.

Of the 37 million shares, 30,982,558 will come from the company and 6,017,442 from existing stockholders. McAfee expects to have 165.44 million Class A shares outstanding after the IPO.

In the six months through June 27, McAfee posted profit of $31 million, swinging from a loss of $146 million in the year-earlier period. Revenue rose 9% to $1.4 billion from $1.29 billion.

John McAfee founded McAfee Associates in 1987 and ran it until 1994, when he left the company.

McAfee’s anti-virus software was a market leader along with Norton in the 1990s and 2000s. It sold itself to Intel INTC for $7.7 billion in 2011.

In 2016, Intel sold a 51% stake to the San Francisco private-equity firm TPG for $1.1 billion. In its IPO prospectus, McAfee cites TPG and Chicago PE firm Thoma Bravo as investors.

After leaving McAfee Associates, John McAfee founded a raft of companies, including Tribal Voice, which offers the PowWow chat program; QuorumEx and Future Tense Central. 

In 2016 he sought the Libertarian Party nomination for president, losing to former New Mexico Gov. Gary Johnson. He gave it another shot this year, to no avail.

McAfee was arrested last week in Spain and is facing extradition to the U.S. on tax evasion charges. In a statement announcing the charges, the Department of Justice noted “The indictment does not allege that

fuboTV Prepares Terms For $150 Million IPO

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fuboTV (FUBO) intends to raise $150 million from the sale of its common stock in an IPO, according to an amended registration statement.

New York, NY-based fuboTV was founded to offer a combination subscription and advertising revenue platform to stream mostly sports events to user devices such as SmartTVs, mobile phones and other computing devices.

In 2019, pre-acquisition, fuboTV generated a monthly ARPU of $54, which represented an increase of 42% over the previous year.

Management is headed by Chief Executive Officer Mr. David Gandler, who has been with the firm since April 2020 and was previously president and CEO of fuboTV and Vice President Ad Sales at DramaFever, a video streaming service.

Below is a brief overview video of a consumer review of fuboTV:

Source: Home Theater Hobbyist

The company’s primary offerings include:

  • Live television for sports events
  • Over 700 channel access to local TV
  • Other streaming providers such as Apple and Google

fuboTV has received at least $850 million from investors.

The firm obtains subscribers through online marketing, providing a trial and seeking conversion to paid status.

fuboTV closed 2019 with 316,000 paying subscribers. Its advertising business grew 201% year-over-year and management says it is a ‘key driver of our monetization strategy.’

Sales & Marketing expenses as a percentage of total revenue have dropped as revenues have increased.

The Sales & Marketing efficiency rate, defined as how many dollars of additional new revenue are generated by each dollar of Sales & Marketing spend, has increased to 3.9x in the most recent reporting period.

The firm has achieved increasing two-month retention rates over the past several years, as the chart shows below:

According to a 2020 market research report by Absolute Markets Insights, the global market for sports streaming was an estimated $11.3 billion in 2018 and is forecast