wonder if BestBuy.com will evah go IPO
BestBuy.com leads $22 Million Second Round Financing of etown.com
12/28/99 1:39:52 PM
NEW YORK, Dec 28, 1999 (BUSINESS WIRE) --
ZDNet and Key Strategic and Institutional Investors Also Support
Leading Consumer Electronics Information and Shopping Web Site
etown.com, the premier online source for consumer electronics information and shopping, today announced it has secured $22 million in new equity capital, led by BestBuy.com, a wholly-owned subsidiary of Best Buy Co., Inc. (NYSE: BBY) The round, which was significantly oversubscribed, brings the total amount of capital invested in etown.com to $25.5 million. BestBuy.com was joined by ZDNet (NYSE: ZDZ) and a select group of investors including Sands Brothers, Gruber & McBaine Capital Management, Bedford Oak Partners, LP, and Valor Capital Management, LP. Irvine, CA. based investment bankers, L.H. Friend, Weinress, Frankson & Presson, LLC acted as placement manager and advisor to etown.com in the transaction. Also acting in an advisory capacity was J.R. Bothe & Associates and acting in a fund raising and advisory capacity were World Equity Group and First Midwest Securities.
The funding will enable etown.com to further its mission of providing world-class customer service by building-out additional functionality and tools on its site. This expansion of existing site features will include enhancements to the IDA Shopping Advisor, which draws upon the extensive knowledge base of etown.com's resident experts and converts it into an interactive resource for consumers. To make it even easier for users to choose and buy consumer electronics products, etown.com will also expand its industry-leading content in terms of the breadth and depth of information available on its site. In addition, etown.com will launch a consumer advertising campaign to increase awareness of its offerings.
"etown.com's product reviews, information and independent editorials provide an unbiased, knowledgeable source to help BestBuy.com build trust among our consumers," remarked John C. Walden, BestBuy.com president & CEO. "As we develop a comprehensive, consumer-oriented Internet service, selective partnerships like this will provide best of class content to complement our internal efforts." Minneapolis-based Best Buy is the largest volume retailer of consumer electronics in the United States. BestBuy.com will leverage assets of its parent company including the brand equity, advertising, logistics, vendor partnerships, and brick & mortar locations to provide a cost-effective, service-oriented, consumer experience among its channels.
etown.com's editorial content, including more than 4,200 consumer electronics product profiles and reviews, will be integrated into ZDNet's popular Equip site (www.zdnet.com/equip), a comprehensive consumer electronics site combining high-quality editorial content and ecommerce services. ZDNet Equip is part of ZDNet's growing Tech Life Channel (http://www.zdnet.com/techlife), which caters to the needs of all technology-interested consumers, from families to avid gamers.
"We chose to partner with etown.com because of its high-quality consumer electronics product reviews, which will be integrated into our popular ZDNet Equip site," said Vince Broady, general manager of ZDNet's Consumer Division. "etown.com's editorial content meets ZDNet's high standards, and will allow our technology-interested audience to receive the best buying advice. etown.com's content will add significant value to the Equip site, which enables visitors to evaluate, buy and use consumer electronics products to their fullest potential."
The etown.com web site offers people interested in consumer electronics the most comprehensive information currently available on the Internet coupled with an unparalleled online shopping experience. etown.com's product profiles and reviews, IDA shopping advisor and product comparison features allow consumers to research their needs thoroughly and then purchase the product that is right for them at the best price.
"etown.com has met or exceeded all the targets we had set for this holiday season," commented Robert Heiblim, etown.com CEO. "With completion of second round funding, and with our alliance with first-rate partners such as Best Buy, ZDNet, and Sands Brothers, Gruber & McBaine Capital Management, Bedford Oak Partners, LP and Valor Capital Management, LP, we are confident that we will be able to expand our position as the industry leader in the Internet consumer electronics space."
Based in New York and San Francisco, etown.com previously closed a $3.5 million initial round of funding on February 11, 1999.
About etown.com
Founded in 1995, etown.com is the leading online information and shopping resource for buyers of consumer electronics (CE) products. Through its website, etown.com provides consumers with the most comprehensive, award-winning CE content, commerce, and community in any medium. Its DealerWeb(TM) of fulfillment partners gives consumers access to the Internet's largest selection of consumer electronics gear. Additionally, etown.com provides state-of-the-art customer support on and off-line, before, during and after any purchase. Co-branding and content partners include Yahoo! and Lycos. etown.com has offices in New York, NY and San Francisco, CA. For more information visit www.etown.com.
About Best Buy
Minneapolis-based Best Buy Co., Inc. (NYSE: BBY) is the nation's largest volume specialty retailer of consumer electronics, personal computers, entertainment software and appliances. The Company operates 354 retail locations in 37 states, and offers CDs, DVD movies and gift cards online at www.bestbuy.com.
About ZDNet
Based in San Francisco, ZDNet (NYSE: ZDZ) operates the leading Web destination (www.zdnet.com) for people who want to buy, use and learn about technology. ZDNet offers an enormous depth and breadth of original, fresh content that it serves to a growing audience ranging from IT professionals, to families, to gamers. Winner of the Computer Press Awards' Best Overall Online Site, ZDNet Sites consistently ranks among the Top 20 Web properties according to Media Metrix's at home/at work study. ZDNet's content is available worldwide through 29 sites in 19 countries outside of the United States. |
