More Paul Allen Worship
IRVINE, Calif., Jul 12, 1999 (BUSINESS WIRE via COMTEX) --
IBC Announces Investment Opinion and Follows Microsoft Founder
Paul Allen Into Wireless Stocks Part II: The Rise of Metricom
Paul Allen, now worth over $30 billion, is the third wealthiest man
in the world behind Microsoft Chairman Bill Gates and Berkshire
Hathaway (NYSE:BRK.A) Chairman Warren Buffett.
Most of that comes from his still hefty $22 billion stake in Microsoft,
which Paul Allen co-founded and where he now serves as a board member.
What makes Allen particularly interesting, though, is what he's done
and continues to do with the rest of his resources by way of his Vulcan
Ventures investment vehicle.
On June 28, IBC reported that Metricom (Nasdaq:MCOM) recently announced
that MCI WorldCom (Nasdaq:WCOM) and Vulcan Ventures have together
invested $600 million in the company through the purchase of 60 million
new convertible preferred shares of Metricom stock at $10 per share. As
of this writing, just a couple weeks later Metricom has more than
quadrupled in price, currently trading over $50 per share intraday
setting a new 52 week high.
MCOM designs, develops and markets wireless network products & services
that provide low-cost, easy-to-use data communications that can be used
in personal computer and industrial applications. Allen either owns or
has taken a significant position in companies that may eventually allow
him to compete against America Online (NYSE:AOL), the AT&T
(NYSE:T)/Excite@Home (Nasdaq:ATHM) alliance, Microsoft, and other
contenders for the future of converging interactive media.
A spate of recent acquisitions suggests that the diverse pieces of this
long-questioned quasi-empire are now falling into place and promising
real synergies. These include major investments in High Speed Access
(Nasdaq:HSAC), Northpoint Communications (Nasdaq:NPNT), Priceline.com
(Nasdaq:PCLN), Beyond.com (Nasdaq:BYND), Egghead.com (Nasdaq:EGGS),
Value America (Nasdaq:VUSA), CNet (Nasdaq:CNET), Net Perceptions
(Nasdaq:NETP), Liquid Audio, and Hollywood Entertainment (Nasdaq:HLYW),
drugstore.com, Ziff-Davis' (NYSE:ZD) ZDTV, and Go2Net(Nasdaq:GNET).
IBC is currently focused on profiling emerging undiscovered
wireless/convergence stocks that have the potential to model Metricom's
performance and will soon be featuring Internet Media (OTC BB:USRF) and
Telecom Wireless (OTC BB:NOYR) at its Web site
ibchannel.com.
Why wireless/convergence? Besides following the smart money like Paul
Allen and MCI, with the media convergence and communications revolution
well underway, traditional market leaders are looking to broaden their
service base by acquiring or investing in smaller, more agile
companies.
usrf.com -- According to an article by Tyya Turner at
teledotcom.com -- "... IMC
recently announced the launch of its Quick-Cell Wireless Internet
System, which the company says can be deployed in a week or less. IMC
manages the equipment, which uses the 900- or 2,400-MHz bands, and
charges the ISP a monthly licensing fee. ISPs can offer Quick-Cell
wireless access for 40 to 50 percent less than the typical cost of a
T1, says James Kaufman, IMC's vice president of corporate development."
With the acquisition of CyberHighway, not only did Internet Media
acquire approximately 27,000 dial-up Internet access subscribers and a
state-of-the-art Network Operations Center, the company also gained
immediate access to customers in over 230 markets in which a
CyberHighway-owned or affiliate-ISP provides Internet services. The
company intends to establish a Wireless Internet access system in
nearly 50 of these CyberHighway markets by the end of the third quarter
of 1999. The company continues to pursue aggressively the acquisition
of independent ISPs and licensing of independent ISPs who would exploit
the company's US.RF Wireless Internet access products. IMC recently
announced the launch of its Quick-Cell Wireless Internet System, which
the company says can be deployed in a week or less.
noyr.com - Telecom Wireless is a Next Generation
Communication company led by Dr. Jim Roberts that capitalizes on
convergence of video, voice and data in order to bring broadband
connectivity, content, and e-commerce over a wireless platform through
the Internet. Roberts has more than 25 years experience in the
industry, having served in senior management positions MCI
(Nasdaq:WCOM) and McCaw Communications, now AT&T (NYSE:T), and
(NYSE:MOT) Motorola which owns an 18 percent stake in Iridium
(Nasdaq:IRID) which runs the first global mobile wireless
communications system satellite-telephone network. Iridium's low earth
orbit satellite constellation system enables its customers to send and
receive telephone calls virtually anywhere in the world.
Through strategic acquisitions and technology enhancements Roberts is
positioning Telecom Wireless to convert its network into a digital
platform and challenge ISP's and carriers such as MindSpring
(Nasdaq:MSPG), Onemain (Nasdaq:ONEM), Concentric (Nasdaq:CNCX), AOL
(NYSE:AOL), @Home (Nasdaq:ATHM), Qwest (Nasdaq:QWST), US West
(NYSE:USW), Global Crossings (Nasdaq:GLBX), and Frontier (NYSE:FRO) who
are also racing to deliver the next generation in data delivery.
IBC Featured Web Sites:
usrf.com (OTC BB:USRF) -- Wireless ISP
noyr.com (OTC BB:NOYR) -- ISP
Rollup/Wireless/Convergence
intelliquis.com (OTC BB:INTQ) -- Y2k & E-Commerce
intermost.com (OTC BB:IMOT) -- Asian Web Portal
zsun.com (OTC BB:ZSUN) -- Asian Web Portal
nutritioncafe.com -- (OTC BB:TRIM) Internet Health &
Nutrition
cytation.com (OTC BB:CYTA) -- Online Learning
wrdp.com (Nasdaq:WRDP) -- Telecom
Disclaimer: IBC has received compensation for services and has
acquired: 40,000 shares of Intermost and $265,000 cash. 500,000 Sims
Communication (SIMSC) shares, 40,000 Ziasun, 80,000 Intelliquis
International presplit shares and $40,000 cash; 75,000 WorldPort
Communications (WRDP) shares of common stock; Cytation.com paid 40,000
shares of common stock, 25,000 (144) restricted stock and 150,000
warrants; Internet Media paid 500,000 shares, TrimFast Group paid
50,000 shares of common stock and 20,000 (144) restricted stock.
Copyright (C) 1999 Business Wire. All rights reserved.
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CONTACT: Interactive Business Channel
Matthew Marcus, 949/442-8919
or
Tom Madden, 253/815-1076
ibchannel.com
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