Allen's empire.
July 14, 1999 05:03 AM
IRVINE, Calif.--(BUSINESS WIRE)--July 14, 1999--
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 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 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 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 SEVL .
In addition to recent online education investments, in late June, The Microsoft billionaire's venture firm, Vulcan Ventures, sunk $300 million into Metricom MCOM stock. MCI WorldCom 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 NOYR , www.noyr.com, and IBC client USURF America 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 MOT , which owns an 18 percent stake in Iridium 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 MSPG , Onemain ONEM , Concentric CNCX , Qwest QWST , US West USW , Global Crossings GLBX , and Frontier 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 AOL , the AT&T T /Excite@Home ATHM /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 HSAC , Northpoint Communications NPNT , Priceline.com PCLN , Beyond.com BYND , Egghead.com EGGS , Value America VUSA , CNet CNET , Net Perceptions NETP , Liquid Audio, and Hollywood Entertainment HLYW , drugstore.com, Ziff-Davis' ZD ZDTV, DreamWorks SKG, USA Networks USAI , TicketMaster TMCS and Go2Net GNET .
Allens' investments now connect him to Diller's empire and major investors like Edgar Bronfman Jr. of Seagram VO and John Malone's Liberty Media LMG.A .
For more information on IBC Featured companies visit the following Web Sites:
usrf.com USRF -- Wireless ISP/Web Content & Services
noyr.com NOYR -- ISP Rollup/Wireless/Convergence
intelliquis.com INTQ -- Y2K & E-Commerce
intermost.com IMOT -- Asian Web Portal
zsun.com ZSUN -- Asian Web Portal
nutritioncafe.com TRIM -- Internet Health & Nutrition
cytation.com CYTA -- Online Learning
wrdp.com WRDP -- Telecom
justmed.com 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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