To: tahoe_bound who wrote (20117 ) 7/20/2000 8:07:45 AM From: HO-MEE Read Replies (1) | Respond to My thoughts on acquisitions...........I can understand the frustration due to the lack of acquisitions recently, however let me explain why this has happened and what I expect from Go2net in the near future. Before the Nas started the 36% correction, every internet start-up thought that their concept alone was worth a huge private valuation and as we all saw, many public internet companies were WAY overvalued...............The correction has changed the landscape DRAMATICALLY. I am VERY involved in Angel financing for internet companies as well as later stage financing and I can tell you from EXPERIENCE that valuations have been SLASHED and the start-ups are finding financing VERY difficult to come by. Internet companies that thought they would come out at $25/share and trade up to $150 the first day have seen their deals get cancelled or at the very least postponed. The street wants earnings, not red ink........ Since this "re-evaluation" of the group has occured recently, the companies are looking for strong partners(Go2net is a PERFECT example) to help carry them to the future. Now.....I expect Go2net to make MANY strategic investments at great SIGNIFICANTLY lower levels than such an investment would require just 4 short months ago. My point is this, these deals DO NOT happen overnight, theyu require due diligence, etc. etc. If GNET doesn't make any significant investments/acquisitions in the near future, then management has REALLY blown it..........I believe that we will see several big deals in the next 90 days because I believe that Russ and co. has done a magnificent job in running a PROFITABLE internet company, and have waited for the internet world to come back to earth before spending Uncle Paulie's money.
