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Technology Stocks : Commerce One Inc - (CMRC) -- Ignore unavailable to you. Want to Upgrade?

To: Top Jim who wrote (639)	1/13/2000 1:26:00 PM
From: William Partmann	Read Replies (1) \| Respond to of 1938

Just a guess but more and diverse future revenue streams are created by the JVs.

To: Top Jim who wrote (639)	1/17/2000 12:21:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1938

CMRC/Shell deal from Wall Street Journal Looks like this JV thing is a better arrangement than just selling the service, also note CMRC will get license fees in addition to a cut from the profits of the JV since they will have 10% of the stake in the new company. $29 billion dollars worth of sales in the first year is a lot biz to start with and don't forget the fact that we are also looking at a new IPO in the offing, overall a great deal if you ask me. We are going much higher from here is what I am thinking. ================= FRIDAY, JANUARY 14, 2000 Commerce One And Shell Plan An Online Market Commerce One Inc. and Royal Dutch/Shell Group said they plan to form a venture to develop an online marketplace to link buyers and suppliers in the world oil, gas and chemicals industry. The business-to-business portal will allow companies to make purchases online, and feature an Internet auction, among other services. Officials at Commerce One, a Walnut Creek, Calif., electronic-commerce software company, said the new portal will be similar to the online parts-purchasing system it developed for General Motors Corp. of Detroit. "Obviously, the world is changing, and the Internet is becoming a big part of it," said Mark Bouzek, executive vice president of global practices at Shell's international unit in Houston. The oil and gas firm said it anticipates the business portal will help to reduce its capital expenses as part of its $4 billion cost-savings plan announced in December. The company also said it hopes the venture will attract other companies in the energy sector. Shell said it expects purchases made within the company to reach $29 billion this year, or about 15% of the $200 billion spent annually in the oil, gas and chemicals industry. Under terms of the agreement, Commerce One will hold a 10% stake in the as-yet-unnamed company, while Shell will retain a 75% share. The remaining shares will be administered by the new company's board and management to cover employees' stock options and attract new partners, they said. Both Commerce One and Shell said they intend to pursue an initial public stock offering, but didn't provide a timetable. While Commerce One won't contribute any money to the venture, it said it will issue to Shell warrants for approximately 4.28 million shares of its common stock, which, when exercised, will reflect a 5% stake in the company. Commerce One also said it expects to receive license fees for its technology. Mr. Bouzek declined to disclose how much Shell expects to put into the new venture. Shell said it expects to launch the new online exchange in 90 days.