profit taking and selling resulting from the before the open news blip is my guess. The shorts had a good day today....the won the fight ....but not the war. Any profits made on the short side will be made by short term traders. Like so many others i'm in for the long run....having a average cost in the low 9's. I'll hold this one for at least two years .... probably.
news from this morning.....
biz.yahoo.com
Tuesday October 19, 7:03 am Eastern Time
Company Press Release
Zany Brainy Forms Joint Venture With Online Retail Partners LLC to Create E-Commerce Web Site
Site To Launch in Time for Holiday Shopping Season
KING OF PRUSSIA, Pa.--(BUSINESS WIRE)--Oct. 19, 1999--Zany Brainy, Inc. (Nasdaq National Market: ZANY - news), a leading specialty retailer of high quality toys, games, books and multimedia products, announced today it has established a joint venture with Online Retail Partners LLC (ORP) to develop www.ZanyBrainy.com, an e-commerce web-site. The site will offer a vast selection of high quality toys, games, books and multimedia product for kids, similar to the products currently sold at the more than 100 Zany Brainy retail stores located across the United States. The Company expects the site to be fully operational for the important holiday season.
ORP is a newly formed company that will provide capital and a shared infrastructure of marketing and technology resources to established branded retailers to help them build successful e-commerce businesses. Zany Brainy will be the exclusive toy retailer associated with ORP.
Based in New York City, ORP is backed by Liberty Digital, Inc. (Nasdaq: LDIG - news), a diversified new media company with investments in Internet content and interactive TV businesses; Comcast Interactive Capital, a $200 million corporate venture capital fund affiliated with Comcast Corporation; Global Retail Partners, a growth capital fund dedicated to the crossover of the retail industry and e-commerce; the private equity funds Oak Investment Partners and Pequot Private Equity; and Ramsey Beirne Associates, a high-impact executive search firm.
''Our partnership with ORP enables us to draw upon their technology and marketing expertise to create an e-commerce site that is as exciting and interactive as our stores,'' said Keith C. Spurgeon, Chairman and CEO of Zany Brainy, Inc. ''Additionally, Zany Brainy expects to take full advantage of the synergies of the partnership by working with other ORP partners, both strategic and retail, to leverage costs, achieve economies of scale and coordinate strategic initiatives.''
''We formed ORP to provide leading branded companies like Zany Brainy with the expertise that will enable them to migrate onto the Net,'' said Henry Nasella, Chairman and CEO of Online Retail Partners. ''Zany Brainy is a dynamic brand with a history of exceptional customer service. In working with the Company, our team of professionals fully immersed themselves in Zany Brainy's business and customer service philosophy in order to help the Company translate their brand to the Web.''
Zany Brainy and ORP have formed ZB Holdings, LLC, under which ZanyBrainy.com, LLC will operate as a wholly owned subsidiary. ORP and Zany Brainy, Inc. will each make initial contributions of $5 million cash for the creation and development of the site. ORP has also agreed to contribute an additional $10 million cash to the site by November 15th. Voting interest in ZB Holdings will be split equally between Zany Brainy, Inc. and ORP. Zany Brainy, Inc. will not consolidate ZB Holdings into its financial statements. ORP and Zany Brainy, Inc. have agreed to share losses and profits in a manner such that Zany Brainy, Inc. does not anticipate booking any losses or impairment of its investment during 1999 in connection with the launch of www.ZanyBrainy.com.
''As in our Zany Brainy stores, we are committed to creating an e-commerce experience that is user-friendly for all ages and complements our product mission of offering the best merchandise for children at the right price,'' continued Mr. Spurgeon. ''We expect that the site will further strengthen our brand by establishing a virtual Zany Brainy presence throughout the U.S.''
''As the important holiday selling season approaches, we are excited about the prospect of providing a new and exciting way for our loyal existing customers to shop and reaching new customers who have yet to discover the unique Zany Brainy shopping experience,'' concluded Mr. Spurgeon.
About Zany Brainy
Zany Brainy, Inc. is a leading and rapidly growing specialty retailer of high quality toys, games, books and multimedia products for kids. The Company is a different kind of toy store with a unique product mission and a passionate commitment to its customers. Zany Brainy believes learning should be fun. Its products entertain, educate and spark the imaginations of children up to 12 years of age. The Company combines a distinctive merchandise offering with superior customer service and daily in-store events to create an interactive, ''kid-friendly'' and exciting shopping experience for children and adults. The Company presently operates 101 stores in 26 states.
Certain statements in this report, including statements about the timing and success of the e-commerce web-site, anticipated losses, synergies from the joint venture and the enhancement of our brand, set forth management's intentions, plans, beliefs, expectations or predictions of the future based on current facts and analyses. Actual results may differ materially from those indicated in such statements because of factors such as delays in the launch date, availability of merchandise and the extent of other retailers' participation in similar joint ventures with ORP. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the Securities and Exchange Commission.
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Contact:
Zany Brainy, Inc., King of Prussia
Robert A. Helpert
Chief Financial Officer
610/278-7800
or
The MWW Group, New York
Investor Relations - Tel. 212/704-9727
Robert Ferris -- rferris@mww.com
Marjorie Kaschak -- mkaschak@mww.com |
