3DO Delays Proposed Stock Sale, Will Reconsider in ’94

3DO Co., which has lost half its market value in the past two months, Thursday delayed selling 1 million shares of common stock.

The highly touted, money-losing technology company blamed “unfavorable stock market conditions” and said it will reconsider the proposed sale after the first of the year.

3DO shares traded at $37.25 on the Nasdaq market when the company announced the secondary offering Nov. 8. On Oct. 15, the stock had reached a 52-week high of $48.25. It has plunged more than 15% in the past five days, closing Thursday at $23.75, up 25 cents.

“It was overpriced and overvalued in the first place . . . especially when you know this is a company that’s not going to get any serious revenues until late ‘94, if they’re lucky,” said Tim Bajarin, president of Creative Technologies, a market research firm in Santa Clara, Calif.

Redwood City-based 3DO, whose investors include Matsushita Electric Industrial Co., Time Warner Inc. and Electronic Arts, had planned to use proceeds from the secondary offering for working capital.

Last month, the company reported a fiscal second-quarter loss of $7 million, or 35 cents a share. Its operating expenses in the quarter totaled more than $8.68 million. As of Sept. 30, the company had cash of $32.5 million.