Hi Jenne:
July 15 is history. Someone can acquire Lycos without paying breaking up fee to Barry Diller. Is DW busy this weekend? One thing we know, Alta Vista is:
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AltaVista Searches For Key To Enter Top
Web Heights
Date: 7/19/99
Author: Pete Barlas
In the battle for eyeballs on the Web, this time it's AltaVista firing the shots.
Only two weeks after Internet investment company CMGI Inc. bought a
majority stake in the company from Compaq Computer Corp., AltaVista
has unveiled plans to broaden its services.
The company is trying to become a portal. In doing so, it hopes to attract
more visitors than rivals Infoseek Corp. and Lycos Inc. It even wants to
challenge Yahoo Inc., the second-most-visited site on the Web, after
leading Internet service provider America Online Inc.
''We're throwing down the gauntlet,'' said AltaVista Chief Executive Rod
Schrock. ''We intend to be the leader. I don't intend to be a follower. I've
never been a follower.''
He is now, however. His site gets far fewer visitors than Yahoo, Lycos or
Infoseek's Go Network group of Web sites, which it shares with Walt
Disney Co.
AltaVista soon will start offering free Internet access and a cheap, easy
way for smaller firms to get on the Web. It also is searching for
acquisitions, says Schrock, who freely admits he'd welcome a merger with
Lycos. Lycos' largest shareholder is CMGI. Such a deal would help
AltaVista grow faster, he says.
''I don't see a downside to it,'' Schrock said.
Palo Alto, Calif.-based AltaVista wants to transform from mainly a search
engine - a site for surfers to find things on the Web - into a portal. Portal
sites offer search service and more, including a window into many
electronic-commerce outlets.
As part of its quest, AltaVista says it's partnering with 1stUp.com Corp. , a
new, San Francisco-based company that offers free Internet access to
consumers. It looks to make money on ad sales.
AltaVista plans to start bundling its service with 1stUp in the next few
weeks. Web users who sign with 1stUp will gain access to the Web
through AltaVista's portal.
AltaVista and 1stUp are taking their cue from NetZero Inc. The privately
held Westlake Village, Calif.-based company has signed up more than 1
million users since it started offering free Internet access in October.
NetZero gets its revenue from ads.
NetZero seems to prove that free Internet access drives eyeball traffic on
the Web, Schrock says.
''Offering a free service is the fastest and easiest way for people to get on
the Internet,'' he said.
In September, AltaVista plans to roll out its Homebase StoreFronts
e-commerce program, which aims to help small businesses sell products on
the Web.
Through Homebase, AltaVista and affiliates build e-commerce sites for
small businesses. But they do more than that - they also locate the Web site
in a regional Web portal. AltaVista is signing up media companies that are
happy to offer such a service on their Web sites. The New York Times and
the Houston Chronicle have agreed to host the Homebase companies, and
about 40 other sites are in the works, according to AltaVista.
So, if you're, say, a Houston-area Joe's Shoe Store, you can get an
e-commerce site created using Homebase and get it linked directly onto the
Houston Chronicle site.
''There are millions of small businesses out there on the Web, but really no
way to find them,'' Schrock said. ''Homebase will take you straight to
them.''
AltaVista charges $200 to set up the Web site and $100 a month for the
service. It also collects a small percentage of revenue generated by
e-commerce transactions at Homebase sites.
Analysts wonder if Homebase and 1stUp are enough.Yahoo already offers
an e-commerce package for small businesses, and the jury is out on free
Internet access, says Barry Parr, an analyst for International Data Corp.
Many analysts say AltaVista can't hope to be a winner without merging.
Besides Yahoo and AOL, they say there's room probably for only one
more Web portal. ''The market isn't capable of supporting more than three
big players,'' Parr said.
One company's name surfaces most often when mentioning AltaVista and
merger: Lycos. CMGI owns 19% of Lycos.
''For CMGI, it doesn't make sense to own a fifth-ranked portal,'' said Ullas
Naik, an analyst with FAC Equities Inc., a Boston-based investment bank.
''It would be better to see if there is synergy between AltaVista and
Lycos.''
Lycos offers services that AltaVista lacks, such as community Web sites
Tripod and Angelfire. Combining Lycos and AltaVista would pose a
serious threat to rivals, Parr says.
''It's an interesting match,'' Parr said. ''There's not a lot of overlap.''
But not everyone agrees. CMGI wouldn't like AltaVista and Lycos merging
because it wants shares in more than one Web racehorse, says Paul
Noglows, an analyst for Hambrecht & Quist LLC in San Francisco.
(C) Copyright 1999 Investors Business Daily, Inc.
Metadata: CMGI CPQ SEEK LCOS YHOO DIS AOL E/IBD
investors.com
Best regards
Paul |
