By Olivia Oran and Alistair Barr
June 12 Textbook rental company Chegg has
selected two banks to lead an initial public offering, according
to three sources familiar with the matter.
The Santa Clara, California-based company has picked JPMorgan
Chase & Co (JPM.N) and Bank of America Corp (BAC.N), the sources
said. The offering could raise $200 million, one of the sources
JPMorgan and Bank of America declined to comment. Chegg
could not be reached for comment.
Launched nationally in 2007, Chegg has raised more than $200
million in venture funding and debt. Its investors include
Insight Venture Partners, Foundation Capital, Gabriel Venture
Partners and Kleiner Perkins Caufield & Byers. The company
plants a tree for every textbook it rents or sells and has
planted more than 5 million trees to date, according to its
Chegg, originally called "the Netflix for textbooks,"
started life as a website that allowed college students to save
money on expensive text books by renting them.
Under former Yahoo! Inc (YHOO.O) executive Dan Rosensweig,
the company in recent years has built a broader online education
platform that supports activities such as homework note-sharing,
class planning, finding professors and tutors, and even
recruiting for athletics.
One question hanging over an IPO of Chegg is whether the
company will be valued as a new type of education-oriented
professional network, such as LinkedIn (LNKD.N).
(Reporting by Olivia Oran in New York and Alistair Barr in San
Francisco; editing by John Wallace)
((Olivia.Oran@thomsonreuters.com)(646 223 6335))
Keywords: CHEGG IPO/
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