Compaq Announces Intent to Acquire Zip2; Zip2 Technology, Media Partnerships Make AltaVista the Most Compelling Platform for Local E-Commerce and Local Information
Business Wire - February 16, 1999 08:57
HOUSTON--(BUSINESS WIRE)--Feb. 16, 1999--Driving its strategy to make AltaVista the leading Internet destination site for information and e-commerce, Compaq Computer Corporation (NYSE: CPQ) today announced the execution of a definitive merger agreement with Zip2 Corporation, the leading provider of Internet platform solutions for media companies and local e-commerce merchants.
With Zip2's industry leading platform and media company partnerships, AltaVista intends to deliver the most robust platform for localized information and e-commerce on the Internet. In addition, AltaVista and Compaq offer distinct synergies for Zip2 customers. By combining the Zip2 platform with AltaVista's powerful search and e-commerce technologies and the high-volume user traffic generated by AltaVista and Compaq Internet PCs(1), Zip2 can significantly extend the revenue potential for local media and e-commerce partners.
Zip2, privately held and located in Mountain View, Calif., will become an operating division of the AltaVista Company, a wholly owned subsidiary of Compaq. The Board of Directors of Zip2 has unanimously approved the transaction, which is a cash purchase for all of Zip2's outstanding shares.
"This acquisition underscores AltaVista's commitment to delivering the very best Internet computing experience," said Rod Schrock, President and CEO of the AltaVista Company. "Our belief is that the best Internet computing experience must include a local 'Internet Oasis' where consumers can access deep local information about activities and shopping possibilities right in their own backyards. Zip2's advanced technology and strategic relationships with media companies will make AltaVista much more powerful and useful to the local user."
"Joining forces with AltaVista will enable Zip2 to more quickly achieve its vision of creating an Internet experience that connects consumers with the local information and e-commerce that is most relevant to their lives," said Derek Proudian, CEO of Zip2. "Zip2's advanced technology and extensive local online experience, combined with AltaVista's ability to drive millions of visitors to local Internet sites, will enable our media partners to lead their local online markets and expand their local business opportunities. We see this as a win for Zip2, our investors, partners, customers and for consumers."
The transaction is expected to close following the satisfaction of customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.
Zip2 Sets the Standard for Local Portals
Zip2 Corporation is the leader in developing, hosting and maintaining consumer Web sites specifically for media companies. With a roster of Zip2-powered sites reaching 200 and covering the top 50 U.S. metropolitan areas, Zip2 is becoming the industry standard Internet platform. Zip2's local portal platform offers a unique combination of national portal services paired with the deep local content of its media customers, giving users the full-spectrum of familiar Internet tools, while delivering a locally relevant online experience. Zip2's Professional Services group assists media companies and their local merchants develop compelling and useful online services for targeted consumers, leveraging Zip2's knowledge of consumer behavior, interactive advertising and key applications such as e-commerce.
Media companies using the Zip2 platform to run their online enterprises include the Mirror Group, Classified Ventures, The New York Times Company, Knight Ridder, Morris Communications, and newspapers in the Hearst, Times Mirror, Media General, Pulitzer Publishing and Freedom Communications chains. For more information on Zip2, visit zip2.com.
AltaVista Leads the Industry
AltaVista is a pioneer in Web search technology and continues to set new standards, such as indexing the entire Internet, as well as providing the first-of-their-kind AV Family Filter and AV Photo Finder search capabilities.
Over the last several months, AltaVista has made extensive enhancements to make navigating the Internet relevant, fast and effective for Web users of all proficiency levels. Both customers and the press have noted the impact of these improvements:
-- AltaVista is the ninth largest individual domain on the Internet, as ranked by the firm Relevant Knowledge. (Compaq Presario Internet PCs featuring "Instant Internet" keyboard buttons - linked to AltaVista and e-commerce sites - drive more than 20 million user visits to the AltaVista destination per month).
-- AltaVista's audience increased 45 percent from Q3'98 to Q4'98 and revenues increased 64 percent during the same time frame.
-- AltaVista received the highest marks in the Internet search industry for accuracy, user satisfaction and loyalty based on a recent study by Cyber Dialogue, a leading authority in one-to-one marketing and online market research.
-- AltaVista was ranked No. 1 in customer loyalty by the market research firm NPD.
-- AltaVista was named one of "The Best Sites of '98" and "The Best Search Site" by Yahoo! Internet Life/ZDNet.
-- Search Engine Watch named AltaVista the "Fastest Search Site on the Internet."
-- AltaVista is a nominee for the 1999 Webby Awards given by the International Academy of Digital Arts & Sciences (IADAS).
-- AltaVista holds 52 index search-related patents and has the No.1 index of the Web, according to the Guinness Book of World Records.
For more information, visit AltaVista's flagship site located at altavista.com or av.com.
Compaq Background
Compaq Computer Corporation, a Fortune Global 100 company, is the second largest computer company in the world and the largest global supplier of computer systems. Compaq develops and markets hardware, software, solutions, and services, including industry-leading enterprise computing solutions, fault-tolerant business-critical solutions, enterprise and network storage solutions, commercial desktop and portable products and consumer PCs. The company is an industry leader in environmentally friendly programs and business practices.
Compaq products are sold and supported in more than 100 countries through a network of authorized Compaq marketing partners. Customer support and information about Compaq and its products are available at compaq.com.
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Compaq, Registered U.S. Patent and Trademark Office. Product names mentioned herein may be trademarks and/or registered trademarks of their respective companies.
On Tuesday, February 16, 1999, please contact the following Compaq representatives for further information
Media Contacts Compaq Computer Corporation Jim Finlaw 404-588-4755 OR 404-588-4758 Compaq Computer Corporation Alan Hodel 281-518-8932 alan.hodel@compaq.com
Investor Relations Contact Compaq Computer Corporation Tien Le 281-514-6098 tien.le@compaq.com
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(1) AltaVista is the ninth largest individual domain on the Internet, as ranked by the firm Relevant Knowledge. Compaq Presario Internet PCs featuring "Instant Internet" keyboard buttons - linked to AltaVista and e-commerce sites - drive more than 20 million user visits to the AltaVista destination per month.
CONTACT: Compaq Computer Corporation, Houston
Jim Finlaw (Media), 404-588-4755 or 404-588-4758
Alan Hodel (Media), 281-518-8932 or
alan.hodel@compaq.com
or
Tien Le (Investor Relations), 281-514-6098 or
tien.le@compaq.com
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