all longs must read this!
ijardine, Steve Harmon is wrong because
by: TimetoKnow (36/F/Richmond, Virginia) 70309 of 70774
He states that Disney can buy the remaining shares of Infoseek for $50.00 a share. That is just plain irresponsible reporting because it is false. Infoseek acquired 100% of the outstanding shares of Starwave common stock for approxmiately 25,512,000 shares of Infoseek common stock and assumed options outstanding under Starwave stock option plans, which will be exercisable subject to vesting, for an aggregate of approximately 2,626,000 shares of Infoseek common stock.
Now, Disney received approximately 23,200,000 shares of Infoseek common stock in the Starwave acquisition.
Disney than purchased 2,642,000 shares of Infoseek common stock and received a "WARRANT" to purchase 15,720,000 shares of Infoseek common stock in exchange for $70 million in cash and a five year $139 million PROMISSORY note.
NOW, that warrant generally will vest and be exercisable as to one-third of the shares subject to the warrant on each of the three anniversary dates following the closing of the Starwave acquisition. The exercise price for those warrants will be 120% of the thirty-day average closing price preceding each anniversary date, suject to a $50 MAXIMUM EXERCISE PRICE.
Disney's 25.8 million shares of Infoseek common stock represents approximately 43% of the total outstanding shares of Infoseek. Those warrants will enable Disney to acheive a majority shareholder position over time (NOT BUY SEEK FOR $50.00 A SHARE.)
Also, Disney has agreed to a three-year standstill whereby its ownership position in Infoseek will not exceed 49.9%, subject to certain exceptions.
SO, "NO" Disney will NOT be buying our shares for $50.00 a share, on the contrary, it is in Disney's best interest for their 43% investment to appreciate as much as possible. The options they vest will help them increase their holding but NOT buy Infoseek for $50.00 a share as Keith Benjamin and thus Steve Harmon report.
I'm going to call Infoseek this morning to see if anything can be done about this sort of amateur, unprofessional and irresponsible reporting that people like Steve Harmon put out there. It's HIGHLY irresponsible considering this person claims to be an expert. An expert would do their research thoroughly before reporting such claims, and Steve Harmon obviously doesn't.
Carla
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