Yet the Motley Fool’s Rick Aristotle Munarriz reveals that there may not be much to get excited about.  “Classmates was losing money before it was scooped up, and it’s been posting operating losses at United Online ever since,” he writes.  “You can’t blame Internet access provider United Online for trying to ride the wave, though.  The IPO process gives it the chance to enrich itself, with a $50 million dividend going its way.  United Online will also retain the majority of its voting power in the company . . .”

That sounds harsh, but don’t think that I picked the one negative viewpoint out of a sea of supporters; observers at paidContent.org, ZDNet, and AllFacebook seem to have subscribed to the “big whoop” stance, as well.  Still, as you might have guessed from the name of that last blog, some onlookers are wondering what this could mean for a more popular social network.

That’s right – can we learn anything about Facebook based on Classmates?  Nick O’Neill (of AllFacebook) writes, “One thing I get from this is that Classmates either has a horrendous monetization strategy or Facebook really does have way too much hype. . . .  Based on a comparable company (Classmates.com), this would value Facebook at somewhere around $250 million.  We all know that Yahoo offered $1 billion, but we should view this from the perspective of a comparable company when giving consideration.”

Well, in terms of comparison, at least I don’t see Facebook ads a dozen times a day.

Internet users probably saw lots of ads for Classmates.com, Vonage telephone service, and the University of Phoenix in June. Figures from Nielsen//NetRatings in a press release show those services all had big ad campaigns pushing them to viewers in June.

Classmates.com parent United Online led June with 3.7 billion impressions delivered on places like the AIM client as well as a variety of web sites. Vonage, prepping for a $600 million IPO to help grow its VoIP service, brought forth 3.5 billion impressions itself.

The University of Phoenix and other educational properties held by the Apollo Group ranked third with 2.9 billion impressions. Dell Computer had a nearly identical number to Apollo, but was fourth in June.

LowerMyBills.com and ads for InterActiveCorp properties both delivered in the neighborhood of 2.5 billion ads apiece. No other advertisers made it past the 2 billion barrier. Job search site Monster had 1.7 billion impressions, followed by DVD rental company NetFlix, Microsoft, and online trading firm ScottTrade.

David Utter is a staff writer for WebProNews covering technology and business. Email him here.

Classmates Online, Inc. operates Classmates.com, connecting millions of members throughout the U.S. and Canada with friends and acquaintances from school, work and the military. Its Classmates International subsidiary also operates leading community-based networking sites in Sweden, through Klasstraffen Sweden AB and in Germany, through StayFriends GmbH.

At September 30, 2004, Classmates had 1.4 million pay subscribers, 10.3 million monthly active accounts, and more than 38 million registered members, giving it a significant database of self-registered personal information. During the nine months ended September 30, 2004, the company generated revenues of $54 million – 75% from subscription fees – and operating income of $3.7 million, after $4.9 million of depreciation and amortization expenses. The company has 175 employees, and United Online intends to maintain Classmates’ operations in Renton, WA.

The acquisition is expected to be completed in the fourth quarter of this year, subject to customary closing conditions, including regulatory approval. Classmates Online’s Board of Directors and shareholders have approved the transaction.

“Our proposed purchase of Classmates is consistent with our stated mission to expand our network of affordable, high-quality consumer Internet subscription services,” Goldston said. “Classmates has built a highly recognized, market-leading brand that offers a range of community-based networking services that make it a top destination for consumers seeking to find, connect and keep-in-touch with friends and acquaintances from their school, work or military affiliations.

Together with United Online’s 6.6 million active accounts, the addition of Classmates will give us a powerful audience of more than 16 million active accounts, providing additional marketing opportunities and extending our advertising reach. We look forward to welcoming Classmates’ team of skilled employees to the United Online family.”

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