I went and did some lookin' and here's the first thing I found. Haven't even read it yet. I figured I'd do it with you all.
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Softbank Acquires OzEmail Web Media Business 03/18/97
EL SEGUNDO, CALIFORNIA, U.S.A., 1997 MAR 18 (NB) -- By Bob Woods and Stuart
Kennedy, Computer Daily News. Softbank's [TOKYO:9984] Interactive Marketing (SIM) division
has bought OzEmail's [NASDAQ:OZEMY] Web Wide Media business, in return for a minority
interest in Softbank Interactive Marketing.
Specific financial details in the transaction are not being released, an OzEmail spokesperson told
Newsbytes. But part of today's deal reportedly has OzEmail scoring a "substantial" but undisclosed,
minority stake in SIM, described by OzEmail chairman Malcolm Turnbull as more than five percent
but less than 50 percent.
Essentially, Softbank is buying Web Wide Media's technology, client list, and employees in
Australia, the OzEmail spokesperson said. Softbank is going to incorporate those assets into its
existing interactive marketing services for third-party Web sites, which already reach 48.8 percent of
the Web surfing population, according to a recent PC Meter survey quoted by a Softbank
spokesperson.
While SIM handles mainly the larger branded Web sites, offerings for smaller Web sites that Web
Wide Media tends to handle might be announced in the near future, a Softbank spokesperson told
Newsbytes.
Some of SIM's current clients include Compuserve's CSi and Sprynet services, MSNBC Weather
By Intellicast, The Site, Webchat Broadcasting System, and ZDNet.
Web Wide Media was established late last year as a joint venture between OzEmail and Rupert
Murdoch's BSkyB operation, aimed at using technology to deliver tailored Web advertising to highly
selective target audiences (Newsbytes, Dec. 6, 1996).
It planned to use sophisticated tracking techniques which could identify a Net surfer's location from
the Internet Protocol (IP) address and sift out the user's site surfing patterns from following the
"cookie" trail. OzEmail founder Sean Howard then said the aim was to get 10 percent of the
anticipated Web advertising revenue of US$5 billion by 2000.
Why sell out of what could be a boom business? "SIM had developed a very large lead in the
market," said Turnbull. SIM is reported to be the world's largest source of Web impressions,
reaching almost 50 percent of active Web users. "We could have just plugged away with it but the
opportunity to sell came at an early stage," Turnbull said. "We have a lot of other things on our plate"
-- including recent Internet phone and fax service ventures.
The expansion strain has been telling on OzEmail with R&D costs blowing out from $50,000 in the
third quarter to $1.6 million in fourth quarter. The company says $1.3 million was associated with the
Net phone and fax ventures, along with $269,000 related to an Internet access for schools deal with
the New South Wales Education Department.
The company also took a $506,000 share of losses in the WWM partnership with Rupert
Murdoch's BSkyB pay TV outfit in the latest quarter.
Turnbull said WWM had "some hundreds of Web sites signed up," although OzEmail's development
efforts in the venture had not been as hard driving as they might have been, given that sale
discussions with Softbank began in December, the same month OzEmail announced its WWM joint
venture with BSkyB.
Turnbull said the joint venture arrangement with BSkyB had been "terminated", that the issue of
around 2 million OzEmail options (at US$14) to BSkyB would now not proceed and that the sale to
SIM represented 100 percent of WWM.
As part of the deal, SIM will open an Asia Pacific office in Sydney, with Anthony Bertini, former
president and chief executive officer of Web Wide Media, as managing director.
While Murdoch might be out of Net advertising through WWM, News Corp. has hooks into
Softbank via their joint-venture JSkyB pay-TV operation in Japan.
Softbank's WWM buy is just one in a long series of Internet related investments made by Softbank
Chief Executive Officer (CEO) Masayoshi Son, a man sometimes described as "Japan's Bill Gates".
Other Internet investments by Softbank include CyberCash, I/PRO, Yahoo!, US Web, and Net
content provider inquiry.com.
Web Wide Media's Web site is at webwidemedia.com .
Softbank Interactive Marketing's site is at simweb.com .
(19970318/Press Contacts: Linda Segervall, Softbank Interactive Marketing, 310-727-1277;
Steven Ezzes, OzEmail, 212-225-6769/Reported By Newsbytes News Network:
newsbytes.com )
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