for what it's worth
(COMTEX) B: Interactive Business Channel Investment Opinion
B: Interactive Business Channel Investment Opinion
IRVINE, Calif., Jul 14, 1999 (BUSINESS WIRE via COMTEX) --
IBC, Microsoft Founder Paul Allen, Oracle CEO
Invest in Internet Education and Wireless Category Killers
Interactive Business Channel (IBC), www.ibchannel.com, Wednesday
announced that similar to Paul G. Allen's Vulcan Ventures Investment
Vehicle, IBC invests in and consults with a suite of emerging companies
with the potential to become "category killers" of the Internet age.
Consistent with billionaire Allen's business strategy, IBC facilitates
communications and synergy between its select client companies for
mutual benefit.
Allen's influence on Wall Street was displayed once again as shares of
Asymetrix Learning Systems (Nasdaq:ASYM), which makes software for
firms' online education efforts, surged nearly 105 percent. The stock
move Friday came after news of Allen's 42.1 percent ownership of the
company resurfaced.
Asymetrix Learning Systems Inc. is a provider of online learning and
solutions, similar to IBC client www.Cytation.com (OTC BB:CYTA). Both
companies develop tools that author, distribute and manage courseware
across the Internet or any local or wide area network.
However, one of the most significant advantages of using Cytation's
RollCall turnkey software is that it provides online training, tracking
and assessment as a service. Client companies will never have to
purchase any software or hardware, install any software, administer and
maintain a Web server, tap into scarce IS resources, or worry about
getting stuck with a limited training solution.
Additionally Cytation.com may have more going for it with its recently
completed acquisition of the premier site for college-bound students
and clear market leader in online electronic college applications,
www.collegelink.com.
Enthusiasm for the potential of online education is further emphasized
with Allen's recent investment in Academic Systems and Oracle
(Nasdaq:ORCL) CEO Larry Ellison's new venture with Lowell Milken,
Knowledge Universe, a full-service developer of high-tech education
ideas.
Through Knowledge Universe (KU) Mike Milken hopes to build a huge
presence in the $800 billion educational-services industry, according
to Business Week. The Milkens were also early investors in the
restructured online education company 7thLevel.com (Nasdaq:SEVL).
In addition to recent online education investments, in late June, The
Microsoft billionaire's venture firm, Vulcan Ventures, sunk $300
million into Metricom (Nasdaq:MCOM) stock. MCI WorldCom (Nasdaq:WCOM)
matched the investment for a total private placement of $600 million
into the wireless Internet services provider.
The terms of the deal allow Vulcan Ventures and MCI to buy 60 million
new shares of Metricom at $10 each and enables Metricom to roll out its
new wireless product in mid-2000.
Just weeks later, Metricom has almost quadrupled, hitting an intraday
high of $56, benefiting wireless stocks including Telecom Wireless (OTC
BB:NOYR), www.noyr.com, and IBC client USURF America (OTC BB:USRF),
www.usrf.com, which surged almost 40 percent Monday.
USURF America may be well ahead of MCOM and have more upside growth
potential armed with its current Quick-Cell roll out and combined
e-commerce/portal/Web content offerings evidenced via its acquisition
of www.CyberHighway.com. Leaving the door wide open for competition,
Metricom now provides subscribers in a few cities with wireless
Internet access at limiting speeds of up to 28.8 Kbps.
According to USURF America, the US.RF Quick-Cell Wireless Internet
System is capable of burstable T-1 equivalent speeds at a price about
40 percent below the local market price of traditional, hard-wire T-1
service. USURF America currently has approximately 47,000 dial-up
Internet access subscribers and immediate access to customers in more
than 230 markets.
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 at MCI , McCaw Communications,
now AT&T and Motorola (NYSE:MOT), 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 ISPs and carriers such as MindSpring
(Nasdaq:MSPG), Onemain (Nasdaq:ONEM), Concentric (Nasdaq:CNCX), 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.
Convergence
Allen's play seeems to be one of convergence. He 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)/(Nasdaq:IMAL) 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, DreamWorks SKG, USA Networks
(Nasdaq:USAI), TicketMaster (Nasdaq:TMCS) and Go2Net (Nasdaq:GNET).
Allens' investments now connect him to Diller's empire and major
investors like Edgar Bronfman Jr. of Seagram (NYSE:VO) and John
Malone's Liberty Media (NYSE:LMG.A).
For more information on IBC Featured companies visit the following Web
Sites:
usrf.com (OTC BB:USRF) -- Wireless ISP/Web Content &
Services
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
justmed.com (Nasdaq:SIMS) -- E-Health Disclaimer: IBC has
received compensation for services and has acquired: 40,000 shares of
Intermost and $265,000 cash; 500,000 Sims Communication shares; 40,000
Ziasun; 80,000 Intelliquis International pre-split shares and $40,000
cash; 75,000 WorldPort Communications 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.
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