Here is the relevant press release:
Fingerhut Acquires Equity Interest In MountainZone.Com -- Acquisition Underscores Company's Strategy to Become Major Electronic Commerce Player
Business Wire - December 07, 1998 08:16
MINNEAPOLIS and SEATTLE--(BUSINESS WIRE)--Dec. 7, 1998--Fingerhut Companies, Inc. (NYSE: FHT), one of the nation's largest direct marketers and online retailers, and the Zone Network, parent company of MountainZone.com, the leading community-based website for mountain sports information and merchandise, today announced that Fingerhut has acquired a 19.9 percent equity interest in The Zone Network. As part of the agreement, Fingerhut also has acquired the right to increase its stake to a majority interest. Financial terms of the agreement were not disclosed.
Designed for the 120 million enthusiasts of mountain sports including climbing, skiing, snowboarding, hiking and mountain biking, MountainZone.com has become one of the Internet's most successful virtual communities.
"MountainZone.com, the leading website for the growing mountain lifestyle market segment, has powerful content, a loyal following, and unmatched management expertise in Internet technology," said William Lansing, Fingerhut president. "MountainZone.com's successful integration of content and commerce is a perfect fit with our direct marketing expertise. We'll leverage our 500 million pieces of direct mail and Fingerhut.com to send traffic to MountainZone.com."
"The MountainZone.com acquisition is another example of Fingerhut's stepped up strategy to grow the company through Internet activity," said Ted Deikel, Fingerhut chairman and chief executive officer. "We intend to continue to make Internet deals and partner with other companies where there are opportunities to build our presence to become the leading retailer on the web."
"We are delighted to be aligned with Fingerhut," said Chuck Gottschalk, CEO and president of MountainZone.com. "This relationship allows us to benefit from their tremendous database marketing and merchandising expertise, providing us with the opportunity to significantly expand our commerce business. In addition, this investment provides us with the fuel needed to develop even better content and cybercast coverage of major mountain sporting events."
According to Lansing, the acquisition provides Fingerhut with the opportunity to sell selected Fingerhut merchandise on MountainZone.com's website, share technology expertise, leverage Fingerhut's state-of-the-art infrastructure, and expand its customer base. Fingerhut will provide "backroom" operations including order processing, fulfillment services, merchandise integration, and database management as well as assisting MountainZone.com with promotional advertising and marketing support.
The acquisition is the fourth for Fingerhut in as many months. In July, Fingerhut purchased an equity interest in PC Flowers and Gifts, Inc., a leading online provider of flowers and gourmet food and gift baskets. In August, the company purchased cataloger Arizona Mail Order and in November, Fingerhut acquired direct marketer Popular Club.
Launched in March of 1996, MountainZone.com, the leading mountain sports website, has created one of the Internet's most successful virtual communities and is an expert in online vertical marketing. In 1997, USA Today rated MountianZone.com the "best winter sports site." From first-hand interviews with Olympic gold medallist Picabo Street to multimedia cybercasts of the '97 and '98 Mount Everest climbs, MountainZone.com offers visitors more than 5,000 outdoor retail products and more than 50,000 pages of award-winning mountain sports news, interviews, and photos at www.mountainzone.com. MountainZone.com is produced and owned by The Zone Network and is based in Seattle, Washington. The Zone Network also owns and operates www.skiresorts.com, a website offering travel, lodging and gear deals to skiers.
Fingerhut Companies, Inc. is a leading database marketing company selling a broad range of products and services through catalogs, direct marketing, and the Internet. The company also owns Popular Club, a membership-based cataloger of general merchandise, Arizona Mail Order, a catalog apparel company, and Figi's, a food and gift catalog company. Fingerhut owns approximately 20 percent of PC Flowers & Gifts, a leading online provider of flowers, gift baskets and gourmet food. Based in Minnetonka, Minn., the company and its subsidiaries employ approximately 9,000 people. Fingerhut can be found on the Internet at www.fingerhut.com, www.andysgarage.com, www.thehut.com, www.figis.com, www.pcflowers.com, www.mountainzone.com, and www.skiresorts.com
CONTACT: Lynda Nordeen
Director, Corporate Communications
President, CFO
(612) 936-5015
lynda.nordeen@fingerhut.com
or
Gerald Knight
Executive Vice President, CFO
(612) 936-5507
or
Meredith Goldstein
Public Relations Manager
MountainZone.com
(206) 621-8630 x210
meredithg@mountainzone.com
or
Alex Wellins
Morgen-Walke Associates
Investor and Public Relations
(415) 439-4519
awellins@mwa-sf.com
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