Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: hotlinktuna who wrote (102104)	10/6/1999 2:18:00 PM
From: Evan Dimmer	Respond to of 119973

Onsale, Egghead.com Plan to Acquire Other Rivals After Merger 10/6/99 6:44:00 AM Source: Bloomberg News New York, Oct. 6 (Bloomberg) -- Onsale Inc. and Egghead.com Inc., which expect to merge next month, said they plan to buy rival Internet sellers of technology products to ensure that their new company remains the industry leader. In July, Onsale agreed to buy competitor Egghead.com for about $400 million in stock. The combined company will operate under the Egghead.com name and World Wide Web address, and have an estimated $500 million in sales this year. The retailers, which were battling each other for online sales, are combining their financial resources to promote the better-known Egghead.com brand, and seek to cut costs. Some of their remaining rivals include Cyberian Outpost Inc., Value America Inc., Ubid Inc. and closely held Buy.com. ''Our goal is to aggregate all the companies that we think have synergy with what we're doing into one,'' said Onsale Chief Executive Jerry Kaplan in an interview Monday at a conference in New York sponsored by BancBoston Robertson Stephens. The new Egghead.com will look both at companies in the same line of business, and those that will expand it into new product categories, said George Orban, Egghead.com's current CEO. Orban and Kaplan declined to comment on which specific companies they might want to acquire. Onsale's atAuction site holds auctions for products including personal computers, electronics, sporting goods and vacation packages. In January, Onsale started another format called atCost, which sells computers and related products for wholesale prices plus certain fees. Egghead.com sells PCs, software, peripherals and accessories, and holds auctions. In February 1998, it became the first traditional brick-and-mortar retailer to close all of its stores and shift to selling entirely online. Orban will be chairman of the combined company. Onsale's Kaplan will be CEO. Its headquarters will be in Menlo Park, California, Onsale's current home. Egghead.com is based in Vancouver, Washington. Shares of Egghead.com rose 1/16 to 6 7/8 in early morning trading, and Onsale rose 1/16 to 13 3/8.