Current Media, a cable TV company co-founded by Al Gore, filed for a $100 million initial public offering today. The news comes after a surge of interest in startup companies engaged in the convergence of conventional media and the Internet. Current Media’s CurrentTV was founded in 2002 and launched in 2005 as a 24/7 cable and satellite TV network that relies heavily on user/audience participation. - what they term “Viewer Created Content”.

Current Media’s S-1 IPO filing with the SEC did not disclose the expected offer price or other details, but recent stock grants value the company at around $11.46 per share. As a result, an IPO range of around $13 to $15 per share can be expected with around 7 million shares sold. It will be interesting to see whether a non-profitable startup company will be able to obtain a $100 million valuation in today’s market despite the harsh credit environment and bearish sentiment.

Current Media did give some firm details into the company’s financial conditions in the filing. In 2007, the company had revenues of $63.7 million and a net los of $17 million. Interestingly, only 16% of its revenues were from advertising while 84% came from affiliate fees paid by cable and satellite operators. Through partnerships with Comcast, Time Warner, DirecTV, Dish, Sky and Virgin Media, CurrentTV is reaching more than 51 million households in the United States and United Kingdom.

There are a few issues that investors must confront, however, before investing in this company. First, Chairman Al Gore and CEO Joel Hyatt each earned $1.05 million in salary and bonus in 2007 - perhaps a bit excessive for a startup that is non-profitable. The company also had to restate their consolidated statement of cash flows for 2005 and their consolidated balance sheet in 2006 in what their disclosures say “are evidence of a significant deficiency in internal controls”. Shares in the company are also dual structured, which means that founders control more votes. And finally, the copmany has about $2.2 million in cash with about $36.5 million due in May.

In the end, this is an IPO that is ready to hit a market that is hungry for citizen journalism and social media. It will be interesting to see how the market reacts a startup during today’s bearish sentiment, but Al Gore’s influence will likely help push it higher. Combined, these factors make Current Media and IPO worth watching!

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