InfoSpace (INSP): Where GNET went! Message Board

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Technology Stocks : InfoSpace (INSP): Where GNET went!

INSP 93.32

+1.3%

2:48 PM EST

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To: Hawkmoon who wrote (2036)	3/16/1999 1:03:00 PM
From: Scrapps	Read Replies (1) of 28311

Ron, a couple question for your thoughts…don't worry I won't hold you to it. <g> The following clip is from the Motley .Fool. fool.com Vulcan announced its purchase of $165 million in new preferred stock in Go2Net yesterday, and will grab another $135 million in preferred stock if shareholders approve. Assuming Vulcan gets its hands on all the preferred shares, the ultimate conversion would represent 26% of Go2Net's common stock. Vulcan also agreed to a deal where it would offer a maximum of $90 per share for 1.4 million common shares of Go2Net owned by its executives and directors ($126 million). To top it off, Vulcan will present a tender offer to get as much as 3.6 million more shares at the same price ($324 million). The total potential investment comes to a whopping $750 million, and assuming all goes as planned, Paul Allen and Vulcan will own 54% of Go2Net's outstanding shares. Okay now, I see the shareholder approval as a sure thing in PA getting his preferred shares, but I'm having trouble in putting together a realistic scenario with the purchasing of the common shares. First of all do you see PA holding out for a drop in share price to $90? If so how long would he gamble on that happening? Or could the ownership of GNET start unloading and drive the price down? Myself I don't see those things as practical…to say the least. SO…is he forced to buy at market price? Is the $750 million a cap to the deal? What kills the deal? And finally...what is PA's own maximum price if not the stated $750 million? btw. My read of the volume today is that there isn't as much churning going on as I suspected. Sorry for so many questions with so little input.

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