Why did Compaq Acquire Shopping.com?
WSJ's (Gary McWilliams) theory: Software and a good fit with Alta Vista:
Compaq Agrees to Pay $220 Million
To Buy Online Retailer Shopping.com
By GARY MCWILLIAMS
Staff Reporter of THE WALL STREET JOURNAL
...Shopping.com, though an unprofitable firm with a history of management turmoil, brings Compaq important software for initiating a purchase, conducting credit checks and maintaining electronic links to suppliers. Compaq also intends to funnel visitors to its Alta Vista search site into Shopping.com's collection of 63 online "warehouses" that sell everything from computers to jewelry.
Mr. Schrock (Compaq Senior VP) said the acquisition, when combined with Alta Vista and other as yet undisclosed efforts, could become competition for Internet portal sites such as Yahoo!, America Online and Excite. Alta Vista, a Web search service acquired as part of last year's purchase of Digital Equipment Corp., receives 11 million visitors a month, according to Media Metrix Inc. It is the 10th most frequently visited Web site, ahead of even Amazon.com.
...The two companies began talks three weeks ago, said Shopping.com President Frank W. Denny. ...
interactive.wsj.com
Orange County Register(Andre Mouchard): E-commerce technology:
... The buyout could be finalized in a month if it meets regulatory approval and if investors who currently own 90 percent of Shopping.com's outstanding stock agree. Shopping.com lists about 6 million shares outstanding but has a total of 15 million shares issued when options and warrants are taken into account. Chief Executive Frank Denny said investors who hold options on Shopping.com stock would get similar rights to buy Compaq stock.
Compaq, based in Houston, wants Shopping.com's back-of-shop technology, saying it is the best such technology available in the fast-growing world of E-commerce.
"We feel the No. 1 reason people buy computers now is to access the Internet," said Compaq spokesman Jim Finlaw. ...
ocregister.com |
