-Ancestry.com chief voices support for IT IPOs.

CORPORATE IT UPDATE-(C)1995-2011 M2 COMMUNICATIONS

6 June 2011 - Tim Sullivan, chief executive of Ancestry.com (NASDAQ:ACOM), said that although only a small number of Internet groups were set for big initial public offerings (IPOs), the successful ones had the chance to make huge gains, the Financial Times reported.

Sullivan said that Zynga, Groupon, Facebook and LinkedIn (NYSE:LNKD) were all leaders in their respective markets, and that not all social media companies should expect to have the same market success.

He said also that it was unwise to call the current investment situation a "bubble", because in contrast with the dotcom bubble in the 1990s, now most of the current candidates for an IPO had well-functioning business models.

Sullivan warned that Internet companies from emerging countries tended to be more overvalued.

In its latest quarter, Ancestry.com saw its subscriber base expand 33% on the year and revenues go up 41%. Profits came to USD9m (EUR6m) on revenues of USD91m. The company's share value has almost tripled from an IPO price of USD14.20 to USD40.13 on Friday.

((Comments on this story may be sent to info@m2.com))