VerticalNet, Microsoft seal deal-- 100 Million Investment
(Vert is down to a 1 Billion Mkt cap. I'd say it's a bit
over done since it's down 81%,and they have another 100
million to burn through. besides MSFT could always double
down. hence getting some here at 28--JP)
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By Cecily Fraser, CBS MarketWatch
Last Update: 4:42 PM ET Apr 10, 2000 NewsWatch
REDMOND, Wash. (CBS.MW) -- Online trading community VerticalNet and Microsoft announced Monday that the two companies have sealed a three-year business-to-business, e-commerce services alliance announced earlier this year.
04/14/2000 11:44:28 AM ET
VerticalNet, which operates 55 industry-specific Web sites designed as online business-to-business communities, received a $100 million equity investment from Microsoft.
Shares of Horsham, Pa.-based VerticalNet (VERT: news, msgs) fell 7 23/64 to 50 7/8. On Jan. 21, VerticalNet's stock soared 30 percent when the deal was first laid out. See full story.
As part of the alliance, Microsoft will purchase at least 80,000 VerticalNet storefronts and e-commerce centers and distribute them to third-party businesses.
"We believe that this strategic alliance represents a tremendous competitive advantage for VerticalNet by extending our reach to thousands of small- and medium-sized businesses who are eager to participate in the power of e-commerce," said Mark Walsh, president and CEO of VerticalNet.
Shares of Microsoft (MSFT: news, msgs) fell 3 to 86 1/16. |
