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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: levy who wrote (25130)	2/15/2001 10:47:07 PM
From: KLP	Read Replies (1) \| Respond to of 28311

levy, speaking of things....here's some notes from the past that may shed some light on the present.... This was printed on the Qualquam board Oct 25, 2000 re INSP 3rd Qtr results..... Message 14659981 InfoSpace Reports Record Third Quarter Results Pro Forma Net Income of $0.03 Per Share and Revenues of $57.7 Million Significantly Exceeded Expectations BELLEVUE, Wash., Oct. 25 /PRNewswire/ -- InfoSpace (Nasdaq: INSP), a leading global provider of cross-platform merchant and consumer infrastructure services on wireless, broadband, and narrowband platforms, today announced operating results for the quarter ended September 30, 2000. Financial results reflect the Go2Net merger that closed on October 12, 2000, which was accounted for as a pooling of interests. <<<<<<<THERE IS MORE TO THE ARTICLE>>>>>>>> * Message 14618756 Then levy's "Moneyrand" Rosenburg summary...Oct 19, 2000 * Message 14594721 INSP Inc reports change in asets financial statements and exhibits -from 8-K report 10-16-00 Message 14347148 Notes after the Sept 7, 2000 conference call by Jain Message 14308809 From the Amazon board, note about Merrill Lynch's Blodget and his rating... *** Message 14169989 Infospace Hitches onto Broadband Net Stock Commentary Fri, 7/28/00-9:33 AM by Peter Topolewski While investors didn’t think much of the marriage, sending Infospace stock down 25% early Thursday, the head honchos at Infospace (INSP: news, msgs) and Go2Net (GNET: news, msgs) were talking up the wonders of their recently announced engagement. In a deal set to close later this year, Infospace will offer Go2Net shareholders, which include Paul Allen’s Vulcan Ventures with about a 30% stake, 1.82 Infospace shares for every GNET share they own. On Wednesday the deal was worth about $4 billion. On Thursday the deal was worth about $3 billion. No matter, executives at both companies have indicated they’d vote in favor of the merger. Expect Go2Net to take the Infospace name without much more grumbling. Infospace’s stock plummet sort of stole the thunder from its better than expected earnings, which were also announced Wednesday. For the second quarter, Infospace reported revenues of about $24 million with a net loss of $3.3 million, or one cent a share. The reasons for less than warm reception to the merger could be many. Revenues at Infospace are expected to total $38 million for the year and, according to some analysts, hit $110 million for 2001 excluding the benefits of the merger. But investors are obviously wondering if the $3 to $4 billion merger on its plate is just another instance of an Internet company spending its way to larger growth. Not so long ago Infospace chairman Naveen Jain did predict his company would have a market cap of a trillion dollars in the near future. Does the premium offered for Go2Net – and at 45% over Wednesday’s close there’s no denying Infospace paid a premium – represent some kind of megalomaniacal effort to see this dreamed-of market cap happen sooner instead of later? Maybe, but that doesn’t make this a bad deal. Infospace caters to web sites and wireless companies, providing content and front end e-commerce services such as shopping carts. By the fourth quarter wireless revenue from companies like Nokia (NOK: news, msgs) and AOL (AOL: news, msgs) could represent nearly 40% of Infospace’s total revenue for the year. Go2Net, on the other hand, with second quarter revenues of $23 million, posted a most notable $10 million profit providing hosting, infrastructure and application services to companies on broadband devices. One of its treasures is the HyperMart network where it provides back-end e-commerce solutions to about 1 million small and medium sized businesses. That’s a lot. But together – and you probably see what Jain and Go2net CEO Horowitz saw – the two companies will have a combined customer base of over 2 million merchants. Their combined strength soon becomes obvious. With Infospace’s tight relationships with wireless companies and Go2Net’s with broadband and cable providers, the merged company will offer those 2 million clients total, unified solutions over all platforms. Anytime a company can offer total solutions – and here we’re talking top-notch front and back end e-commerce solutions – that a good thing. And that’s of today. Looking at growth prospects in wireless and broadband, the new, improved, and enlarged Infospace has a rosy future. The makings of a trillion dollar company? Well not yet, but this deal isn’t just about the future. Both Jain and Horowitz say the merger should immediately contribute to Infospace’s bottom line. Look for investors to warm up to this deal. Soon.