(PR NEWSWIRE) Go2Net Shareholders Approve Paul Allen Investment, Authoriza
Go2Net Shareholders Approve Paul Allen Investment, Authorization of Additional
Stock
SEATTLE, June 17 /PRNewswire/ -- Go2Net, Inc. (Nasdaq: GNET), a network of
branded, technology- and community-driven Web sites, announced that its
shareholders today approved elements of an investment by Paul Allen and his
investment organization, Vulcan Ventures, Inc., that will bring Mr. Allen's
direct cash investment in the company to $300 million. At a special meeting
today, shareholders approved Allen's purchase of additional preferred shares
of Go2Net stock for $133 million cash. This complements Allen's $167 million
purchase of preferred stock made on March 15. As a separate part of the March
15 investment agreement made between Mr. Allen and Go2Net, shareholders also
approved Allen's purchase of approximately 1.4 million shares of Go2Net's
common stock from company directors for approximately $126 million cash. The
transactions are effective immediately and bring Mr. Allen's ownership stake
in Go2Net to approximately 34 percent for a total investment of $426 million.
Go2Net's shareholders today also approved an amendment to the company's
Restated Certificate of Incorporation, increasing the number of the company's
authorized shares of stock from 50,000,000 to 500,000,0000. This will
facilitate Go2Net's continued use of its common stock as currency for growth
and acquisitions while accommodating the company's 2-for-1 stock dividend,
which will be paid to shareholders on June 24 and will be reflected on
Go2Net's Nasdaq price at the market open on June 25.
"We're gratified that Go2Net's shareholders have endorsed our relationship
with Paul Allen and Vulcan Ventures, as we're eager to build upon the strong
synergies and shared visions we've already experienced in working together,"
said Russell C. Horowitz, Go2Net Chief Executive Officer. "With this
strategic relationship and one of the largest cash reserves in the Internet
sector, Go2Net is now extremely well-positioned to aggressively build the
Go2Net brand, accelerate our growth and acquisition strategies, and improve
our existing properties and infrastructure. We're also developing a broadband
content division and other initiatives to effectively position Go2Net as the
primary content delivery platform for Paul Allen's rapidly growing network of
Cable subscribers."
As a key component of the agreement signed with Paul Allen and Vulcan
Ventures March 15, Go2Net will work with Allen's affiliated cable companies to
provide its portal services to those companies' subscribers. Allen's cable
assets currently comprise the nation's 4th largest cable operation, having
grown from the 7th largest position in March. In addition to his cable
holdings, Allen also is a significant shareholder of Denver-based High Speed
Access Corporation (HSA), a leading provider of high speed Internet cable
services.
About Go2Net, Inc.
Go2Net is a network of branded, technology- and community-driven Web sites
focused on the following categories: personal finance, search, commerce, and
games. The company also develops Web-related software. The Go2Net Network's
properties include: Go2Net Personal (http://www.go2net.com), which provides
users with a comprehensive Internet start page offering customizable news,
discussion, and stock information, as well as direct access to Go2Net's own
finance, search, free Web hosting, shopping and Java multiplayer game sites;
Silicon Investor (http://www.siliconinvestor.com), the Web's premier financial
discussion site; StockSite (http://www.stocksite.com), which offers
proprietary articles, portfolio tracking tools, company research and news
relating to business and finance; MetaCrawler (http://www.metacrawler.com), a
metasearch service that combines various existing search/index guides into one
service; 100hot (http://www.100hot.com), a leading directory of the Web's most
popular sites; HyperMart (http://www.hypermart.net), the Web's leading
provider of free business hosting services; Haggle Online
(http://www.haggle.com), one of the Web's premier person-to-person auction
services; WebMarket (http://www.webmarket.com), a one-stop comparison shopping
service; and PlaySite (http://www.playsite.com), the Web's premier Java-based
multi-player games site. The company's Go2Net Labs division develops
innovative technologies to enhance the features and functionality of the
Go2Net sites and for licensing to other Internet companies.
This announcement contains forward-looking statements that involve risks
and uncertainties, including those relating to the company's ability to grow
its user and advertiser base. Actual results may differ materially from the
results predicted and reported results should not be considered as an
indication of future performance. The potential risks and uncertainties
include, among others, the company's limited operating history, the
competitive environment in which the company competes, the early stage of the
Web as an advertising and electronic commerce medium, the company's dependence
on advertising and sponsorship revenues, the company's dependence on strategic
relationships to drive traffic to its Web sites, consumer acceptance of the
company's new products and services, the company's ability to develop and
integrate new technologies and services into its existing services, and the
increased use of the Web for commerce. More information about the potential
factors that could affect the company's business and financial results is
included in the company's Annual Report on Form 10-K for the year ended
September 30, 1998 and Quarterly Reports on Form 10-Q for the quarters ended
December 31, 1998 and March 31, 1999, which are on file with the Securities
and Exchange Commission.
Contact: Mark S. Peterson, Director of Public Relations of Go2Net, Inc.,
206-447-1595, mark@go2net.com
SOURCE Go2Net, Inc.
-0- 06/17/99
/CONTACT: Mark S. Peterson, Director of Public Relations of Go2Net, Inc.,
206-447-1595, mark@go2net.com/
/Web site: go2net.com
(GNET)
CO: Go2Net, Inc.; Vulcan Ventures, Inc.
ST: Washington
IN: CPR MLM FIN |
