Given the horrible performances of Facebook (NASDAQ:FB), Groupon (NASDAQ:GRPN) and Zynga (NASDAQ:ZNGA), there has not been much activity with social IPOs. Instead, investors seem more interested in enterprise cloud operators, as seen with hot deals like ServiceNow (NYSE:NOW) and Workday (NYSE:WDAY).
Still, at some point, it’s inevitable that we’ll start seeing social IPOs hit the market again — especially those that have a mobile-first focus.
One good possibility: Shazam. The company has an app that allows your phone to recognize a song or TV show by hearing the lyrics or grabbing a screen capture. From there, you can get more information and find similar content.
So why might Shazam think about going public? First of all, the company has been around since 2002. In other words, there is probably lots of pressure from investors to get a return on their initial investments.
Plus, Shazam has recently hired a new CEO: Rich Riley. He has a strong corporate background, having been the former executive vice president of the Americas for Yahoo (NASDAQ:YHOO). In fact, it was noted in the press release that a big reason for his hiring is to help prep for a public offering.
Whenever that happens, the Shazam IPO is likely to be a hot one. The company has over 300 million users across 200 countries. In fact, there are about 2 million new users added every week.
Besides having a strong brand and cutting-edge technology, Shazam has also been smart to make its app available across many platforms. These include Apple’s (NASDAQ:AAPL) iOS, Google’s (NASDAQ:GOOG) Android, Microsoft’s (NASDAQ:MSFT) Windows Phone and the BlackBerry (NASDAQ:BBRY) line.
There is a chance that Shazam may not even list in the U.S. — maybe pulling off its offering in London (where the company is headquartered) or even Asia. But again, the U.S. market is going to get hungry for social deals at some point. When that happens, a Shazam deal on the NYSE or NASDAQ would likely attract the interest of investors and also provide a nice slug of capital.
To get some more background on Shazam, I chatted today to talk to the co-founders of a new mobile-first company, BeauCoo. They are a husband-and-wife team – Victoria and Christian MacLean — focused on the consumer space. Here’s what they had to say about Shazam:
Tom Taulli runs the InvestorPlace blog IPO Playbook. He is also the author of High-Profit IPO Strategies, All About Commodities, and All About Short Selling. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.