A hurdle for the NETs...Zap rethinking Internet acquisitions
HOUSTON, Oct 15 (Reuters) - Zap Corp. (NYSE:ZAP - news), a one-time oil-drilling company trying to break into cyberspace, said Thursday that the volatile global financial markets had forced it to drop plans for Internet acquisitions.
The subsidiary of Zapata Corp., the parent company founded in 1953 by former President George Bush, said it was re-evaluating its strategy since Internet stock prices have sharply declined recently and valuations of smaller Internet companies have been especially hard hit. In addition, the IPO and related markets remain uncertain, Zap said.
Earlier this year, Zap signed letters of intent for the acquisition of, or investment in, 31 Internet properties and e-commerce
businesses. It was also exploring Internet strategies that would enhance stockholder value, including a possible Zap spin-off or
initial public offering.
Zap said Thursday it has informed the 31 companies that it would not be proceeding with any of the previously contemplated
transactions. Some relationships may be reconsidered, however, after the corporate strategic review is completed and the
condition of the securities markets stabilizes, Zap said.
But the company emphasized that no assurances can be given that a transaction will be concluded with any potential partner.
At present, Zap plans to continue operation of its web magazines ''Word'' and ''Charged.''
Zapata Corp., which no longer has a Bush connection, was off slightly in Thursday morning trading at $6.875. Its year high
price was $24.94. |
