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

To: mikiespeedracer who wrote (26697)	9/10/2001 9:08:20 PM
From: Roger Sherman	Respond to of 28311

Why did he get less then market value? My guess (and it's only a guess), is that once Paul Allen finally decided to get out the h*ll out of this company (despite it being within pennies of it's all-time low) he (and Jain, who had little choice) realized that if he dumped his shares at the open market, he would have to first file a SEC "insider" form. Once that was filed, he (and Jain) realized the stock would continue to tank, most likely well into the pennies, before Paul could dump his almost 22 million shares on the open market. And it's just not that easy to dump that many shares on the open market, without somebody taking notice. In addition, if INSP fell into the pennies per share, it would then run directly into the de-listing problem with the NASDAQ stock exchange, which would be a big additional problem for Jain...perhaps even bigger than the lawsuits. So Paul agreed to dump ALL his INSP shares for exactly one penny/share less than it's all-time low..set just last week, at $1.06/share. IMO, Paul Allen wanted to get the heck out of any relationship with this company...as fast and cleanly as possible. Jain managed to put a positive spin on the deal (and avoid, or delay, potential de-listing problems) by announcing in a big INSP press release, "InfoSpace buys back 21.7 million shares..." Just swell! Now INSP has a few less shares outstanding, but it also has about $22 million less cash...and no one of Paul Allen's stature or prestige involved or invested in the company at all anymore. Shades of Arun Sarin (former CEO), Russell Horowitz (former President & COO), and Rand Rossenberg (former CFO)...only much MUCH bigger, IMVHO. Roger