Charles River Ventures is not buying BigBand Networks. Apologies for the self-obvious news flash, but two separate people have now inquired about the matter.
At issue seems to be a the Federal trade Commission’s mid-February ruling that CRV would not be in violation of Hart-Scott-Rodino regs as related to BigBand. Such rulings do often portend an acquisition, but not in this case. First, CRV wouldn’t be able to buy BigBand, even if it wanted to. The firm is nearing a final close on just over $275 million for its new fund, but BigBand would cost in excess of half a billion dollars.
So why the filing? Because BigBand shareholder ADC Telecom decided late last year to sell its 11% position back to the company. In actuality, it sold the stake to BigBand’s venture capital backers: CRV (5%), Redpoint Ventures (5%) and Meritech Capital Partners (approx. 1%). No idea why only CRV was listed on the FTC report, but no matter…
BigBand is on its IPO road-show, and is expected to price next week. The offering is designed to raise upwards of $128 million, with Morgan Stanley and Merrill Lynch serving as co-lead underwriters. BigBand has raised around $100 million in VC funding since its 1999 inception, from firms like CRV, Meritech, Redpoint, Cedar Fund, Lauder Partners and Time Warner Ventures.