This one is WAY off it's highs. Worth a look I feel:
Nettaxi to Acquire GoHip! for $84 Million in Stock; Acquisition Positions Nettaxi as Top Web Portal and Direct Marketing Firm
CAMPBELL, Calif.--(BUSINESS WIRE)--July 13, 2000--Nettaxi.com (OTCBB:NTXY), a community and portal Website with over 250 million page views per month, today announced that it has signed a binding letter of agreement to acquire GoHip.com, Inc., a privately held direct marketing firm and portal with approximately 110 million visitors and 500 million ad impressions per month. GoHip! was recently named the fastest growing site on the Internet by Media Metrix during the month of May 2000, and is currently ranked as the 34th most visited portal on the Internet according to PC Data Online Reports.
GoHip!'s Browser Enhancement allows users with various interests to customize their browser functionality with continual access to meta-search, chat, topic specific links, and dynamic multi-media content. Since the inception of these patents pending technologies, over 8 million users have downloaded the latest version of the GoHip! Browser Enhancement.
"This is a significant acquisition for Nettaxi," explained Nettaxi's CEO, Robert A. Rositano, Jr. "For the past several months we have focused on reducing our burn rate, reviewing acquisition candidates, and closing the gap between revenues and earnings for fiscal year 2000. The recent round of financing has allowed Nettaxi.com to stabilize our infrastructure, strengthen our partnerships and work toward the GoHip! acquisition. Upon completion of the merger we will achieve real quarterly earnings. Nettaxi.com will be one of the few Internet companies that can actually report 'earnings per share.'"
Under the terms of the letter of agreement, Nettaxi will acquire 100% of the outstanding capital stock of GoHip! at the time of the closing in exchange for shares of Nettaxi common stock with a current value of $84 million. The anticipated date for execution of a definitive Merger Agreement is on or before July 30, 2000. The consummation of the merger is subject to certain conditions, including the negotiation and execution of the definitive Merger Agreement and satisfactory lock-up agreements with the respective shareholders of Nettaxi.com and GoHip.com.
"We are very excited to be joining forces with Nettaxi," said Bruce K. Muhlfeld, Chief Executive Officer, GoHip.com. "By merging the traffic of GoHip! and Nettaxi we become one of the largest portals on the Internet, controlling a tremendous advertising inventory. We believe that our technical and marketing expertise combined with Nettaxi's expanding community creates a formidable and profitable enterprise."
Upon completion of the merger Nettaxi will be aligned with many of the Internet's top portals and advertising agencies that include: About.com, Inc.(Nasdaq:BOUT), Yahoo! Inc. (Nasdaq:YHOO), Infospace, Inc., (Nasdaq:INSP), Doubleclick, Inc (Nasdaq:DCLK), and Engage, Inc. (Nasdaq:ENGA).
About GoHip.com, Inc.
GoHip.com, Inc. (GoHip!) was incorporated in 1998 and today is one of the fastest growing portals on the Internet. GoHip! offers users sophisticated meta-search options, free Web-based email, and a popular avatar chat area on its site. By combining an intelligent product with pioneering technologies (patents pending), GoHip! has achieved tremendous success and revolutionized marketing on the Web. GoHip! is dedicated to simplifying the search process for its millions of users by bringing back relevant and timely results as efficiently as possible. The GoHip! offices are located in Southern California.
About Nettaxi.com, Inc.
Nettaxi.com, based in Campbell, Calif., is a developer of commerce-enabled and content-rich communities that offer members a place to build their "homes" or "businesses" on the Web. Nettaxi's homepage provides access to news, entertainment, sports, financial, and travel information and services such as free e-mail, personal home pages, chat and message boards. Nettaxi's CD-ROM product "Nettaxi.com: The Experience" is an award-winning, interactive learning tool which focuses on users that are new to the Internet. Through interaction with "URL" Nettaxi's cyber-cabby, users learn how to use email and the Internet. The CD-ROM can be customized to serve as an excellent customer acquisition tool by integrating partner's sites into the learning experience. Nettaxi is found on the Web at www.nettaxi.com.
Safe Harbor Statement
The matters discussed in this news release include forward-looking statements which are subject to various risks, uncertainties and other factors that could cause actual results to vary materially from the results anticipated in such forward looking statements. Such risks, uncertainties and other factors include competition, the management of Nettaxi.com's growth, the ability to deliver new products to market on time. Nettaxi.com's limited operating history, significant losses incurred since inception, expectation of losses for the foreseeable future, the fact that our revenue growth in prior periods is not indicative of future growth, the inability to accurately predict our future revenues, and other risks detailed from time to time in Nettaxi.com's filings with the Securities and Exchange Commission. These forward-looking statements represent Nettaxi.com's judgment as of the date of this release. Nettaxi.com disclaims any intent or obligation to update these forward-looking statements.
CONTACT:
Nettaxi.com
Robert Speicher, 408/879-9880
bgspeich@nettaxi.com
Jim Pearce, 949/737-1674 (Investor Relations)
Jpearce@nettaxi.com
KEYWORD: CALIFORNIA
BW0249 JUL 13,2000 |
