The Seattle Times tonight (well 7/26/2000 at 6:PM):
king5.com
Mega-merger for two Seattle Internet companies
July 26, 2000, 06:15 PM
SEATTLE – InfoSpace Inc. and Go2Net Inc., two of the Internet's biggest software service providers, announced plans for a $2.7 billion merger Wednesday.
RESOURCES
• Go2Net
• InfoSpace
The deal would create a single company that provides infrastructure for electronic commerce, high-speed Internet access and wireless Web technologies.
Under the agreement, InfoSpace will issue 1.82 shares of InfoSpace common stock for each share of Go2Net common stock. The transaction has been approved by both companies' boards, but must still be approved by InfoSpace and Go2Net shareholders. The merger is expected to close in the fourth quarter of 2000, subject to shareholder and regulatory approval.
Go2Net closed down $1.561/4 at $60.561/4, while InfoSpace closed up $1.433/4 to $47.75, both on the Nasdaq Stock Market. The merger was announced after the close of trading.
InfoSpace provides software for e-commerce and other services – such as maps, phone directories and e-mail – for many of the Web's most popular sites. The company has also been heavily involved in providing Internet services for cell phone users, working with Verizon Wireless and SBC Communications.
Go2Net has been successful with consumer software, such as its multi-player gaming platform, search engine and other popular Internet technologies. The company also creates Web sites for small businesses and offers credit card authorization services for e-commerce.
"The next big growth area for InfoSpace is the delivery of our platform of services over broadband, enabling today's unified communications companies to deliver one integrated user experience across all devices and all networks," said InfoSpace chairman Naveen Jain, who will remain chairman of the merged company. "By integrating these two companies, InfoSpace will be uniquely positioned to speed the development of the interactive medium from wireless to DSL to broadband." Current InfoSpace chief executive officer Arun Sarin will become vice-chairman and CEO of the combined firm, while Go2Net chairman and CEO Russell Horowitz, will serve as vice-chairman and president.
"Now is the time to create a company that will be the leading provider of mission-critical infrastructure technologies in the wireless, narrowband and broadband worlds," Horowitz said.
"InfoSpace and Go2Net are creating the next-generation infrastructure company, with a differentiated strategic vision and business model." Major investors, such as billionaire Paul Allen and the two companies' founders, have already agreed to approve the agreement, meaning that 40 percent of the outstanding shares are already behind the merger. |
