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| Al Gore's Current Media files for initial public offering Verne Kopytoff, SF Chronicle Staff Writer SAN FRANCISCO -- Al Gore's cable television network, Current Media, on Monday filed for an initial public offering that could raise up to $100 million. The San Francisco company, which targets young adult viewers, is hoping to use the proceeds to pay off debt, fund an expansion and potentially make acquisitions. Current Media, founded by former Vice President Gore and partner Joel Hyatt, broadcasts under the name Current TV to 51 million households around the globe. As part of an unusual strategy, the network mixes professionally produced programming with video submitted by viewers, in a cross between CNN and online video sharing site YouTube. Clips are no more than a few minutes long so they can more easily be repurposed for Current TV's Web site. On-air hosts are all in their 20s and 30s, in keeping with the channel's target 18- to 34-year-old demographic. Current TV launched three years ago amid ample skepticism over its approach in addition to its limited reach to only 19 million homes. Since then, the company has won wider distribution by cutting deals with more cable companies, including Time Warner Cable Inc., AT&T Inc., Comcast Corp., DirecTV Group Inc. and Dish Network, extending its footprint into the United Kingdom and Ireland. "Our objective is to become the pre-eminent global media source for young adults across major communications platforms," Current said in Monday's filing. Current Media had $63.8 million in revenue in 2007, up from $37.9 million a year earlier. Losses in 2007 were $9.9 million, versus $7.6 million the year before. The majority of Current's money comes from the contracts with cable companies, who pay monthly fees based on the number of households the channel reaches. Advertising makes up 16 percent of revenue, although Current is banking on ads eventually generating the majority of the company's revenue. In a novel approach, Current encourages its viewers to create commercials rather than professional advertisers. Ads on Current's Web site have yet to generate significant revenue. Although Current has won some critical acclaim, taking home an Emmy last year for outstanding creative achievement in interactive television service, its audience remains tiny. Viewership is so low that it can't be tracked by Nielsen ratings, putting the network out of contention for many big advertisers who don't want to bother with small channels. Whether Current will be able to raise $100 million ultimately will depend on investor demand. The total cited appeared to be done only for calculating the cost of the IPO registration fee. Current's shares are to trade on NASDAQ under the proposed symbol of CRTM. Gore, 59, serves as Current's executive chairman, earning him a $491,667 salary in 2007, plus a $550,000 bonus. Hyatt, 57, who is chief executive, earned the same amount for the year. No details were given about the two men's stock holdings other than to say that after the IPO, they and their families will own all of Current's Class B shares, which carry extra weight in voting. Current Media is just one of the many items on Gore's plate these days. Since losing his bid for the White House in 2000, he's become an environmental activist, chairman of a British investment company, adviser to Google and partner with venture capital giant Kleiner Perkins. Last year, he was awarded a Nobel Peace Prize. His role with Current Media has given the company an added level of visibility. But it also can come back to haunt the network, should it ever lose his services. "In particular, if Mr.Gore were no longer actively involved in our business or no longer to hold a substantial ownership stake in us, our relationships with key distributors and our business could be materially and adversely affected," Current said in the filing. |