Online Video: Next Stop, Nasdaq?

With the popularity of online video, startups and their investors are deciding that now's the time to go publicand reap rich rewards

DivX makes video-sharing technology. It's also making a profit. That combination is helping the San Diego company make something else: a splash on the stock market, where it began trading on Sept. 22. The company's shares were priced at $16 apiece, above the $12 to $14 expected range. DivX (DIVX) raised $145 million in its initial public offering (IPO), blowing past the $100 million expected by Wall Street. And three days after its debut, the stock closed at $18.11.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.