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

To: Adam S who wrote (671)	1/6/1999 11:26:00 AM
From: Technologyguy	Read Replies (1) \| Respond to of 28311

Another good article about GNET from dimgroup.com: Go2Net where shall it go next? Jan 06,1999 Like most things in life there are the over achievers, the under achievers, and those that just can get any respect no matter how hard they try. ZAPATA announced in 1998 they were going to purchase web sites and develop an internet portal. Their stock price jumped from $10 to $25 a share adding $361 million in cap. value. $361 million for an idea, a plan, a strategy that was later postponed. Yahoo commands a market cap of $24 Billion with their 27 million users, Excite commands a market cap of $2.1 Billion with their 17 million users, Lycos commands a market cap of $2.2 Billion with their 25 million users Infoseek commands a market cap of $1.5 Billion with their 12 million users. Then we look at Go2Net which has a market cap of $227 million and according to the Nov 1998 Media Metrix numbers has 4.2 million users. In other words the market was willing to appreciate the market cap of Zapata higher than the present value of Go2Net. An established internet hub that is in the top 25 in overall internet users and showed profits in the last quarter. While the previous mentioned internet companies have 30-40-50 and even 90 million shares outstanding in Yahoo's case, Go2Net has less than 6 million shares outstanding. It is not uncommon to see Excite, Yahoo , Lycos or Infoseek trade millions of shares on any given day while Go2Net trades less than 100,000 shares many days. In 1998 Go2Net expanded their offerings and continued to develop an internet network focusing on the categories of personal finance, search, commerce, and games. They now own the following properties: Silicon Investor (http://www.siliconinvestor.com), a financial discussion site; StockSite (http://www.stocksite.com), which offers proprietary articles, portfolio tracking tools, company research and news relating to business and finance; MetaCrawler (http://www.metacrawler.com), a metasearch service that combines various existing search/index guides into one service; HyperMart (http://www.hypermart.net), a provider of free business hosting services; WebMarket (http://www.webmarket.com), a one-stop comparison shopping service; and PlaySite (http://www.playsite.com), a Java-based multi- player online games site. In 1998 Go2Net began trading on the NASDAQ Natl. Market system under the ticker symbol GNET. The stock had previously traded on the NASDAQ Smallcap system. In 1998 Go2Net achieved 4th quarter profitability. Despite all these achievements Go2Net has yet to receive the recognition or following given to the other internet networks. A few days ago Go2Net announced their first acquisition for 1999. One may look at the acquisition of Web21 with its hot100.com index and wonder how this acquisition fits into Go2Net's strategy. Go2Net purchased Web21, an online service that ranks the most popular sites on the Internet, for around $13.5 million in stock. This equated to 385,000 shares. Web21 has more than one million unique visitors per month. The acquisition brings Go2Net up another notch in the overall viewer numbers and adds another valuable site to their network. With the very small number of shares Go2net has outstanding they are in the envious position of pulling off many deals similar to this. Go2Net remains the unknown underdog in the Network internet competition. However, we think they will be active in 1999 in acquiring sites that can deliver both content and new users. Net investors have continued to reward the larger internet players. Go2Net appears to have their focus on developing a larger network. In Nov 1998 they were the 25th most visited web property as published by Media Metrix. With this acquisition they could find themselves moving up a number of places. A few more acquisitions like this and before you know it the Go2Net Network could have 10 million users and still have less than 10 million shares outstanding