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.

Strategies & Market Trends : Keep Your Eye On The Ball - Watch List -- Ignore unavailable to you. Want to Upgrade?

To: agent99 who wrote (602)	1/25/1999 10:28:00 PM
From: TFF	Respond to of 2802

Alta Vista IPO - Compaq spin-off announcement expected By Jim Hu Staff Writer, CNET News.com January 25, 1999, 5:50 p.m. PT Compaq Computer tomorrow is expected to announce that it will spin off its Web directory, AltaVista, with the intention of pursuing an initial public offering, according to a source familiar with the announcement. The announcement comes during a period when Internet stock valuations have skyrocketed, especially among Web portals. Indicating their soaring valuations, @Home last week acquired Excite for $6.7 billion in a stock deal. And in November 1998, America Online paid $4.2 billion for Netscape Communications. All the movement in the portal space has led to widespread speculation about which portal is next in line for an acquisition or other major deal. Though Lycos was rumored to be partially on the block, chief executive Bob Davis today said the firm is committed to remaining independent. Yahoo also has been the target of acquisition speculation. An AltaVista spokeswoman declined comment on Compaq's announcement, scheduled for 10:00 a.m. ET tomorrow. The move comes two weeks after Compaq acquired Shopping.com for $220 million in stock. The acquisition was aimed at further building out AltaVista by integrating Shopping.com's e-commerce capabilities. However, Compaq later lowered its original $19 per share offer to $18.25 per share, following a renegotiation of the deal. The expected move comes amid intense speculation about Compaq's intentions regarding AltaVista's future. Expectation of a spin-off announcement also was reported by Bloomberg today. Many industry watchers thought the computer giant would sell AltaVista. This is not the first time AltaVista has been spun off in pursuit of an initial public offering. In August 1996, then-parent company Digital filed with the Securities and Exchange Commission to take AltaVista public. However, the following June Digital canceled its IPO plans for AltaVista due to a restructuring at Digital and an overall cooling of the Internet IPO market.