Chinadotcom CEO sees acquisition opportunites
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NEW YORK, Aug 9 (Reuters) - Chinadotcom Corp. (NASDAQ:CHINA)
Chief Executive Officer Peter Yip said on Wednesday in an
interview the Hong Kong-based Asian Internet company sees many
opportunities for acquisitions and is in talks with a lot of
companies.
"Many companies are beginning to take a hard look at their
own business models," Yip said in a phone interview, adding
that many other companies in the Chinese online network market
are finding it difficult to raise money, just like their U.S.
counterparts. "It's a great opportunity for us. We are in talks
with a lot of companies. We have never been so busy."
He said the company, which posted a second-quarter cash
operating loss of $10.6 million, smaller than some analysts'
estimates, but wider than the first quarter's loss of $8.7
million, is looking at both alliances with equity investments
and acquisitions.
"We are taking our time instead of rushing in to do the
deals. Some of the deals we thought we would complete in the
second quarter, we didn't but it served us well because the
valuations have come down," Yip said, adding that the company
is comfortable with forecasts it will reach profitability in
the fourth quarter of next year.
The company also expects in coming quarters to scale down
its marketing spending, which totaled about $9 million in the
second quarter, Yip said. |
