Classmates IPO Least Likely to Succeed

Then there's the matter of where the proceeds from the IPO will go. While it's still not clear how much Classmates Media will raise, it's certain that the first $50 million will go to repay a loan that the company took out from its parent, United Online.

The loan was needed to pay a $50 million dividend to its parent, United Online.

If you think such a rich dividend is a sign of what's to come, don't hold your breath. The S-1 says it's "not representative of our dividend policy and should not be considered indicative of future dividends." Rotten luck, new investors.

These kinds of pre-IPO insider perks are growing more and more common these days. EMC received a $350 million dividend from VMWare when it spun off its unit in a recent IPO. On the other hand, VMWare is probably the year's hottest IPO, while Classmates Media can expect a tepid response.

Classmates.com is no Facebook. Investors looking to get into a Facebook IPO -- which some are already predicting will be the biggest IPO since Google -- will have to wait for Facebook.

And if you're searching to re-connect with old high-school buddies, it's cheaper -- and easier -- to try Google itself.

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