Not a rumor now... here's the news story:
Subj: Paul G. Allen's Vulcan Ventures buying controlling interest in Metricom, Inc
Date: 97-10-13 09:46:18 EDT
BELLEVUE, Wash.--(BUSINESS WIRE)--Oct. 13, 1997--Vulcan Ventures
Inc., the investment organization for Paul G. Allen, today announced
that it plans to increase its ownership in Metricom, Inc. (NASDAQ:
MCOM) by 4.65 million shares purchased for $56 million, and will take
a leadership position on the company's board of directors.
In a separate transaction, Vulcan Ventures entered into an agreement
whereby it would acquire 2.583 million shares of Metricom from the
Lindner Group. The transactions raise Vulcan's interest in Metricom
to 49%, and are subject to shareholder and Hart-Scott approval.
Vulcan has been an investor in Metricom since 1993.
"We were impressed by the marketability and potential industry
impact of the technology currently under development at Metricom,"
said William Savoy, president of Vulcan Ventures. "After careful
review of the company, its plans and its products, we felt the new
technology could be taken to market sooner and more effectively
deployed nationally under our guidance and management."
"Our employees and board of directors welcome this investment and
commitment by Vulcan," said Bob Dilworth, Metricom CEO and chairman.
"Paul Allen is a visionary who has repeatedly identified great
business opportunities and helped enable their success. His
investment will ensure that Metricom can deploy its next generation
of high-speed wireless data networks rapidly and maintain its
technology and market leadership. We look forward to the increased
involvement of Vulcan and its staff of financial and technical
advisers as we move Metricom forward with this revolutionary
technology."
Based on this significant development, Metricom will defer its
pending $125 million bond offering.
About Vulcan Ventures
New-media investor Paul G. Allen founded Vulcan Ventures Inc. of
Bellevue, Wash. in 1986 to research and implement his investments.
Through Vulcan Ventures, Allen invests in companies that offer
products, services or technologies that fit his wired world strategy,
and can contribute to or benefit from the technology and strategy of
other Paul Allen companies. William D. Savoy is president of Vulcan
Ventures and represents Allen in his professional and personal
financial transactions as well as managing the Vulcan analysts who
investigate and secure investment opportunities. Allen remains
chairman of Vulcan.
About Metricom, Inc.
Metricom, Inc. is the leading provider of wide-area, high-speed,
portable wireless data services. The company's Ricochet products and
services division, headquartered in Los Gatos, Calif., provides
portable and desktop computer users with high-performance,
cost-effective wireless access to the Internet, private intranets,
local-area networks, e-mail and online services.
Ricochet is currently available in the greater San Francisco Bay
Area, Seattle and Washington, D.C., and on several university
campuses and airports throughout the United States. Metricom's
industrial communications division provides both networks and
communications services to the electric, gas, oil and water
industries. For more information, call (800) Go-Wireless, or visit
Metricom's Web site at metricom.com .
CONTACT:
Vulcan Ventures Inc.
Susan Pierson, 425/453-1940
susanp@vnw.com
www.paulallen.com
or
Metricom, Inc.
Susan Kohl, 408/399-8198
Skohl@metricom.com
www.metricom.com
or
For Metricom Investor Relations:
Vanessa Wittman, 408/399-8484 |
