S.F.-based Quokka Sports (NASDAQ: QKKA), which raised
$60M through an IPO, "struggled" on its first day of trading
yesterday to stay above "its offer price" of $12, which is
in the middle of its "expected range" of $11-13, according
to REUTERS. Analysts said that Quokka's concept of using
new technology in delivering sports events online "was
unique," but some were "skeptical about its viability" with
investors because of "concerns" with such things as
bandwidth approach, which "could hit snags" if there are
"delays in broadband development" (REUTERS, 7/28). Quokka
closed at 11 3/8, down 5/8 from its $12 opening, with about
7.6 million shares trading hands (BLOOMBERG NEWS, 7/28). On
Tuesday, Quokka raised the estimated price range for its IPO
by $2 to $11-13 per share, "suggesting solid demand for the
shares." Renaissance Capital IPO Plus Aftermarket Fund
analyst Paul Bard: "It's a pretty unique site. No one else
is offering the content they're offering. ... It might be
ahead of its time. I don't think users will be able to
realize the site's benefits until broadband is in place"
(REUTERS, 7/27). Forrester Research analyst Mark Hardie
said that investors "tried to figure out if [Quokka] was
mainly an entertainment or a Web company." Hardie: "The
fact that they portrayed themselves as a broadcaster I would
argue was the wrong move, because everybody goes out to
compare you with other broadcasters. Kudos to them for
their ability to deliver compelling coverage of sporting
events, but they are a niche player" (REUTERS, 7/28).
PEEKING INTO THE FUTURE: The INDUSTRY STANDARD's Jim
Evans profiles Quokka and writes, "Some observers contend
widespread availability of broadband Internet access could
actually hurt Quokka. They say that in a broadband world, in
which other sports sites still want to do event-oriented
programming, Quokka's primary differentiation will be that
it lacks the news offered by other sports sites. ... For
Quokka, the key might be developing broad relationships with
television networks that don't, or can't, program multi-
media sports-based Web content themselves." ESPN Internet
Ventures Senior VP/Programming & Production Geoff Reiss: "A
lot of what Quokka is doing is very interesting. This is a
real test of whether this is a long-term addition to the way
you program an event. Would ESPN look to emulate some of
that stuff? Absolutely, if we thought there were things we
could add to that approach" (INDUSTRY STANDARD, 8/2 issue).
