DETAILS
Sandbox.com Secures $20 Million Cash Investment from Go2Net And Vulcan Ventures
Sandbox.com Games to Be Integrated With Go2Net's PlaySite and Silicon Investor
RESTON, Va., July 13 /PRNewswire/ -- Sandbox.com, a leading provider of interactive sports and entertainment games, announced today that it has received a $20 million cash investment from Go2Net, Inc. (Nasdaq: GNET), one of the Internet's leading networks, and Vulcan Ventures Inc., the investment organization of Paul G. Allen. As part of the agreement, Vulcan Ventures will receive a seat on Sandbox.com's Board of Directors.
In addition, Sandbox.com will offer selected versions of its games through Go2Net's PlaySite ( playsite.com ), and Silicon Investor ( siliconinvestor.com ), while Go2Net will deploy selected Sandbox games in broadband versions of PlaySite, which are currently under development. In total, Sandbox.com will customize at least 20 co-branded games over the next three years for the Go2Net Network. These games will include some of the popular product offerings from Sandbox.com's Fantasy Sports, Sweepstakes and Casino-Go-Go channels.
Today's agreement also includes a multi-million dollar marketing and promotion component, in which Sandbox.com will be prominently featured throughout the Go2Net Network.
Sandbox.com will use the $20 million investment to further build its technology infrastructure, support its new distribution channels including broadband and wireless, extend its current branding efforts, expand beyond its current staff of 100 employees and enhance the company's direct marketing initiatives, from which 70% of Sandbox.com's revenue is derived. With this investment, Sandbox.com expects that it will be cash flow positive in early 2001. This agreement comes on the heels of CNN/Sports Illustrated Interactive's equity investment in Sandbox.com less than three months ago.
"We are delighted to be working with two organizations in Go2Net and Vulcan Ventures that not only share in our vision, but will also add considerable strategic perspective to our business operations," stated Larry Cotter, president and CEO of Sandbox.com. "We intend for this investment by Go2Net and Vulcan Ventures to be the company's last round of financing, prior to Sandbox.com turning cash-flow positive."
"With a base of nearly four million registered users, a host of popular games, and a strong management team, Sandbox.com is exceptionally well-positioned to be one of the leaders in the sector," said Russell C. Horowitz, Go2Net's Chairman and Chief Executive Officer. "Games clearly represents one of the most powerful categories on the Internet, and we look forward to working with Sandbox to leverage the many opportunities associated with offering their games through the Go2Net Network, as well as through broadband devices."
"Sandbox.com has established a significant position in the online games space, and is effectively positioned to compete long-term in one of the Internet's most popular categories," said William Savoy, president of Vulcan Ventures. "We see meaningful upside to the Sandbox business, and strong synergies in working with several of our portfolio organizations."
About Sandbox.com
Sandbox.com is a leading provider of interactive sports and entertainment games with over 50 free games, including fantasy sports, sweepstakes, trivia, financial, arcade, and play-for-fun casino games. Sandbox.com maintains a community of over 3.7 million registered members. A combination of creative content, an incentive-based marketing program and leading-edge technologies allows Sandbox to generate high volumes of Web site traffic; build loyal user communities; and develop innovative Internet promotion platforms. Media Metrix recently ranked Sandbox 10th among digital properties and Web sites in terms of duration or 'stickiness,' which measures time spent per unique user per month.* Sandbox.com maintains strategic relationships with CNNSI.com, Go2Net, FOXSports.com, USATODAY.com and Lycos.com as well as licensing agreements with the NFLPA, NHLPA and MLBPA.
About Go2Net, Inc.
Go2Net ( go2net.com ) is one of the Internet's leading networks, providing consumer services, business services, and enabling services. The company offers through the World Wide Web a network of branded properties and aggregated content in the categories of search and directory, personal finance, multi-player games, small business services and ecommerce solutions. The company also develops Internet technologies for its own network and for license to strategic partners. The Go2Net Network is home to many of the Internet's leading vertical destinations, including: MetaCrawler, Silicon Investor, the HyperMart Network, PlaySite, Dogpile, and 100Hot.
About Vulcan Ventures Inc.
Vulcan Ventures Inc. of Bellevue, Washington was founded by Paul G. Allen in 1986 to research and implement his investments. Through Vulcan Ventures, Allen invests in companies which offer products, services or technologies that fit his Wired World strategy and can contribute to or benefit from the technology and strategy of other companies within the group's extensive investment portfolio. In addition, the group owns Charter Communications, the fourth largest cable operating company in the United States with more than 6 million subscribers. Recent investments include those in innovative content (e.g. Oxygen Media, ZDTV), Internet and e-commerce (e.g. Drugstore.com, eGreetings, Go2Net, Priceline.com, Stamps.com), telecommunications (e.g. Allegiance Telecom, High Speed Access, InterNAP, NorthPoint Communications) and consumer device and service companies (e.g. Replay Networks, TiVo, and Wink Communications). William D. Savoy is president of Vulcan Ventures and represents Allen in his professional and personal financial transactions as well as manages the Vulcan investment analysts who investigate and secure investment opportunities. Allen remains chairman of Vulcan. For more information on Vulcan visit www.paulallen.com.
* Source: Media Metrix March 2000, ranked by duration among Web site consolidations.
CONTACT: Mike Sweeney of Sandbox.com, 703-476-7360, or msweeney@sandbox-inc.com; or Rick Liebling of Alan Taylor Communications, 212-714-1280, or rick@alantaylor.com; or Mark S. Peterson of Go2Net, Inc., 206-447-1595, or mark@go2net.com; or Susan Pierson Brown of Vulcan Ventures Inc., 425-453-1940, or susanp@vnw.com.
SOURCE Go2Net, Inc.
/CONTACT: Mike Sweeney of Sandbox.com, 703-476-7360, or
msweeney@sandbox-inc.com; or Rick Liebling of Alan Taylor Communications,
212-714-1280, or rick@alantaylor.com; or Mark S. Peterson of Go2Net, Inc.,
206-447-1595, or mark@go2net.com; or Susan Pierson Brown of Vulcan Ventures
Inc., 425-453-1940, or susanp@vnw.com/
/Web site: paulallen.com
/Web site: sandbox.com
/Web site: go2net.com |
