Where do you see CommTouch (CTCH) fit in Go2Net with Paul Allen's investment?
GO2NET AND VULCAN VENTURES INC. TO INVEST $20 MILLION
IN COMMTOUCH SOFTWARE LTD.
REACH COMPREHENSIVE DISTRIBUTION, MARKETING
AGREEMENT WITH LEADING GLOBAL PROVIDER OF EMAIL
SERVICES
Seattle, WA and Santa Clara, CA (July 7, 1999) Go2Net, Inc.
(Nasdaq: GNET), a network of branded, technology- and
community-driven Web sites, Vulcan Ventures Inc., and
CommTouch Software, Ltd. today announced that Go2Net
and Vulcan Ventures intend, subject to certain conditions, to
invest a total of $20 million cash in CommTouch Software,
Ltd., a global provider of partner-branded, Web-based email
services. Go2Net and CommTouch also intend to enter into a
business arrangement under which CommTouch will develop
enhanced email and related services for the Go2Net Network.
The transactions are contingent upon the closing of
CommTouch's initial public offering.
As part of the business arrangement, CommTouch will
develop enhanced email and related services for the Go2Net
Network and will extend these services to other key
organizations with which Go2Net has formed or will form
strategic relationships. Go2Net also intends to offer a private
label version of CommTouch's ZapZone product to members
of its rapidly growing HyperMart (http://www.hypermart.net)
and Virtual Avenue (http://www.virtualave.net) business
hosting services, which together host more than 375,000
member businesses. ZapZone is a proprietary solution
enabling any Web site or personal homepage to offer
personalized, free email accounts to its users. More than
15,000 new sites register each month to offer ZapZone email
for their users, while HyperMart and Virtual Avenue attract a
total of more than 1,000 new member businesses per day.
In connection with its investment in CommTouch, Go2Net will
receive one seat on CommTouch's Board of Directors as soon
as permitted by applicable law. Additional financial terms of
the agreement were not disclosed.
"Go2Net's investment and strategic relationship with
CommTouch brings key email, calendaring and other services
to The Go2Net Network, as well as to our existing and future
strategic partners. It also represents a compelling
opportunity to directly participate in the growth of a company
which has solid management, exceptional products and
highly scalable technologies, all of which are very
well-positioned, nationally and globally, for leadership in one
of the Internet's most popular categories," said Russell C.
Horowitz, Go2Net Chief Executive Officer. "We're looking
forward to working with CommTouch as they expand the
scope and breadth of their services."
"There are clearly powerful synergies among Go2Net, Vulcan
Ventures and CommTouch, and we're anxious to not only
execute on the immediate opportunities ahead, but to
explore and evaluate longer-term areas of promise in our
sector," said Gideon Mantel, CommTouch Chief Executive
Officer. |
