Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Walker who wrote (26814)	11/18/1998 7:35:00 PM
From: esterina	Respond to of 164684

Info On Bid.com (TSE) Strategic Alliances The core strategic marketing alliances established by the Company to date are described below. Bid.Com concluded an agreement with America Online, Inc. (“AOL”), the largest online service provider in the world, to provide the Company's auction platform for goods and services offered to AOL subscribers. The Company provides product procurement, transactional processing and order fulfillment services to AOL. AOL has purchased 1 million Common Shares of Bid.Com and has a representative on Bid.Com's board of directors (the “Board”). See “Material Contracts”. Bid.Com is currently working with other AOL companies to maximize this strategic relationship. Management believes that its alliance with AOL is the cornerstone that will help it achieve increased site traffic to achieve its business objectives. Bid.Com launched a website in May, 1997 with an AOL branded interface, the AOL Online AuctionÔ. Sales in the second quarter of 1997, which reflect the first three months of the AOL Online AuctionÔ, were $488,500 and in the third quarter, representing the second three months of the AOL Online AuctionÔ, were $667,000. These initial results were successful enough for Bid.Com to conclude a two year interactive marketing agreement with AOL whereby the Company agreed to purchase advertising and promotion for US$1,250,000 per quarter with either party having a right of early termination after the first year. This agreement provides Bid.Com with anchor tenant positioning in a number of AOL's E-commerce offerings, plus ownership of various keywords such as “Online Auction”. In addition, Bid.Com secured significant visibility and presence on AOL.com which is one of the most visited sites on the World Wide Web. This aggressive promotional campaign of the Bid.Com Online Auction, supported by substantial online advertising, was launched in March, 1998. Bid.Com has also concluded an agreement with the Toronto Star Newspapers Limited (“Toronto Star”) to provide local auction and cybermall services in the Province of Ontario. The Company will be providing transactional processing and the Toronto Star will provide product procurement and order fulfillment to visitors of The Toronto Star Online Auction and Cybermall branded site. Toronto Star, the largest circulation newspaper in Canada, has purchased a total of 1.5 million Common Shares of Bid.Com and has a representative on the Board. See “Material Contracts”. Bid.Com entered into an E-Commerce and Promotion Services Agreement dated as at July 29, 1998 with Rogers Media Inc. (“Rogers”) pursuant to which Bid.Com granted Rogers the exclusive right to co-brand the Canadian Bid.Com auction, subject to the rights granted to the Toronto Star as described above and except for certain charitable or “cause” marketing in which Bid.Com is involved (See “Business of the Company - Description of Operations”). Rogers has agreed that the Canadian Bid.Com auction will be the only online auction displayed on the home page of Rogers new E-Commerce portal and to be responsible for generating agreed levels of site traffic and advertising revenues, as well as committing minimum levels of annual advertising on both media properties of Rogers and its affiliates and arms-length media properties. Bid.Com also agreed to have a nominee of Rogers elected to the Board. Rogers has committed in excess of $1,000,000 per year in media advertising to promote the partnership. In a separate transaction, Rogers concurrently made an equity investment in Bid.Com. See “Private Placement and Plan of Distribution”. As described below, these core strategic marketing alliances provide Bid.Com with a foothold to take advantage of the anticipated growth in E-commerce: