Interactive agency Modem Media-Poppe Tyson, Westport, Conn., has filed for an initial public stock offering proposing to raise an estimated $45 million. Modem's parent holding company, True North Communications, Chicago, will continue to own a majority of the company after the sale. According to documents filed with the Securities & Exchange Commission, True North will have enough voting power to elect all members of the Modem Media-Poppe Tyson board of directors, as well as make certain decisions, such as approving or denying takeover offers and deciding dividend payouts, without public shareholder approval. Modem disclosed financial information for the first time with the filing.
The agency claims revenue of $30.4 million for the nine months ended in Sept. 30 with a net loss of $2 million for the same time period. Modem also noted in listing risk factors that the agency has sustained both operating and net losses every quarter since June 1996.
The agency said its five largest clients, including AT&T Corp. and Citibank, accounted for more than 50% of its revenues in 1997, as well as through September of this year. AT&T accounted for 20% of Modem revenues in the first three quarters of this year; Citibank accounted for 12%.
Copyright November 1998, Crain Communications Inc.