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.

Microcap & Penny Stocks : USRF - Wireless Internet Access -- Ignore unavailable to you. Want to Upgrade?

To: Sly_ who wrote (653)	1/28/1999 8:35:00 AM
From: BONZ	Read Replies (1) \| Respond to of 956

Yahoo! buys GeoCities NOTE THE INDUSTRY CONSOLIDATION. EVENTUALLY YOU WOULD THINK SOMEONE WOULD BE INTERESTED IN VERTICALLY INTEGRATING BY CAPTURING THE WIRELESS TECHNOLOGY AND ISP ASPECT OF USRF. THE BIG PORTAL COULD THEN ADVERTISE LIKE CRAZY TO THE LOCAL MARKETS IN THE CYBERHIGHWAY CHAIN. JUST THINKING OUT LOUD HERE. Internet portal to buy Web community as industry consolidation continues January 28, 1999: 8:22 a.m. ET Market research on GeoCities Market research on Yahoo Geocities, Be Free ink deal- Jan. 13, 1999 GeoCities Yahoo Yahoo GeoCities NEW YORK (CNNfn) - Internet search engine Yahoo! Inc. confirmed Thursday it will buy GeoCities, a fast-growing Web site community, in a deal that will further solidify Yahoo!'s position as a frontrunner in the online popularity contest. Under terms of the deal, GeoCities shareholders will receive 0.3384 share of Yahoo! for each share of GeoCities they own. With GeoCities having 31.4 million shares outstanding, and Yahoo!'s Wednesday closing stock price of $335.875, the transaction has a value of $3.57 billion. GeoCities, whose stock price has soared in recent months, has a market capitalization of $2.30 billion, meaning Yahoo! would pay a hefty premium for the company. But that's not unusual in this Internet frenzy -- @Home, for example, agreed last week to pay a 40 percent premium for Excite (XCIT). GeoCities (GCTY) is the third most visited site on the Web behind AOL and Yahoo!, with 19 million unique visitors in December, according to Web research company Media Metrix. GeoCities sets up communities of people who share similar interests and allows customers to create their own home page on the Internet. Yahoo!, the second most popular site, has 28 million visitors according to Media Metrix. A deal would likely propel Yahoo! to the top rated site in terms of traffic, but it's not clear how much the two sites' individual audience overlap. Analysts say Yahoo!, like its competitors, is scrambling to maintain its dominance in the portal business. The company already faces stiff competition Excite, AltaVista and Infoseek Corp. (SEEK), the search engine turned Web portal that teamed with Walt Disney Co. (DIS) to launch GO Network. And in November, America Online Inc. (AOL) announced a $4.2 billion acquisition of Netscape Communications Inc. (NSCP) America Online Inc. Analysts expect more industry consolidation in the Web portal market, particularly with Internet companies hooking up with traditional media companies. Analysts say the potential acquisition of GeoCities, or a company like it, is a must for Yahoo!. "I really think it's the only strategy," says Scott Appleby, an analyst with ABN Amro, adding that the growth cycle of the Internet is still in its infancy. "Customers and consumers are still building behavior patterns," he says. "Now is the time to build your network, now is the time to build your brand and AOL has proven that now is the time to build your business." Appleby adds, too, that it's not too late for investors who missed the first wave of enthusiasm for Internet stocks, which have fast become the darling of Wall Street. "We still believe that AOL is a great long-term buy," he says. "They are number one not only in subscribers but in revenues. We also like the financial services stocks, or the online brokers." Appleby says penetration of the online trading business is still hovering at around 10 percent of the overall market, leaving lots of room for growth. And lastly, Appleby says, ABN Amro still likes the community sites, like GeoCities. "We think they are good takeover material or fodder for those portals that are continually looking to build traffic," he says. GeoCities shares closed at a new high of $75 on the Nasdaq market Wednesday, up $4. Yahoo! closed down $15.38 to $335.87. Scott Appleby, ABN Amro analyst, believes it's not too late to invest in Internet stocks. home \| deals \| hot stories \| contents \| search \| stock quotes \| help Copyright © 1999 CNN America, Inc. ALL RIGHTS RESERVED.