InfoSpace (INSP): Where GNET went! Message Board

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

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To: Richard Bunker who wrote (2169)	3/18/1999 1:49:00 AM
From: Bajasurfer	Read Replies (3) of 28311

The Complicated four part deal. This is VERY, VERY COMPLICATED for the average investor to understand. It absolutely is a four part deal. Make no ifs about it! Part 1......Vulcan yesterday purchased $165 million of Go2Net's convertible preferred stock...... Explanation......THIS MEANS GNET RECEIVED $165 million two days ago from offering some preferred convetible stock. GNET RECEIVED ALL THIS CASH.....IT DIDN'T GO TO ANY OFFICERS. Part 2......They plan to buy $135 million more after receiving Go2Net shareholder approval. That represents about a 26 percent stake in Go2Net. Explanation...... These are convertible shares that the stockholders will have to authorize for they are not preauthorized like the other shares were. THIS ENTIRE AMOUNT WILL ALSO GO INTO GNET AS PURE CASH.....This hasn't happened yet. Part 3................Vulcan also agreed to buy 1.4 million shares of common stock from Go2Net executives and directors at $90 a share. Explanation......This is from shareholders (insiders). This has already happened....The officers have already surrendered their shares. Part 4........ Allen will begin a tender offer to buy as much as 3.6 million more Go2Net common shares from public shareholders at the same price. Explanation.....This part obviously hasn't happened yet. Do you really think any of us investors would sell at 90 even if the stock was at $80? Of course not, this is a chess match. If he previously decided he wanted to buy the shares on the open market he would of had to register with the SEC and all of us would of known immeadiately. Now all his intentions are disclosed and Allen will do all he can to drive the price down in the next few days. I see 100 as a rock bottom though. At what moment he feels is appropriate he will step in and begin buying shares on the open market at $100 to $110 in my opinion. He is crafty....I love this game.... Now from the above explanation you can see that already two parts of the puzzle have happened already and that only one is difficult. The tendered shares. Another difficult question is the stock dilution. There will be 3 million more shares added to the total outstanding Gnet shares. But in effect, this will lead to a negative dilution. Why....Because he will buy more shares than he received in convertable. 54% will be strongly held in Allens hands. I then look for a 3 to one stock split after this entire deal is finished. Robert

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