Another site: Auctiongate
CNET, Inc. Acquires AuctionGate Interactive, Inc., a Leading Online Auction [.15825]
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
TO BUSINESS AND TECHNOLOGY EDITORS:
CNET, Inc. Acquires AuctionGate Interactive, Inc., a Leading Online Auction
Site for Computer Products
SAN FRANCISCO, Feb. 22 /PRNewswire/ -- CNET, Inc. (Nasdaq: CNET) today
announced that it has acquired AuctionGate Interactive, Inc. in a
stock-for-stock exchange. AuctionGate owns and operates AuctionGate.com, a
leading auction site specializing in computer products. The acquisition
enables CNET to facilitate person-to-person and business-to-business auctions
of used, refurbished, surplus and end-of-line computer products. The
transaction further expands CNET's role as the Internet's most complete
marketplace linking computer buyers and sellers. CNET also recently acquired
NetVentures, creator of ShopBuilder, a turnkey e-commerce solution that allows
small and midsize computer manufacturers and resellers to build online stores
at CNET and market their products directly to users.
Under the terms of the acquisition agreement, CNET issued approximately
50,000 common shares for 100% of AuctionGate's stock. CNET intends to record
this transaction using the pooling-of-interests accounting method. As part of
the acquisition, AuctionGate's staff will join CNET as employees.
The acquisition introduces a potential new revenue stream for CNET.
Participating sellers in the new auction service will be charged listing fees.
"Online auctions of computer products represent a huge market, and we have
a clear opportunity at CNET to build the most active auction marketplace in
the category," said Halsey Minor, Chairman and CEO of CNET. "This acquisition
further expands the product purchasing options for our users."
Computing: The Online Auction Leader
A recent report by Keenan Vision Research reveals that in 1998 hardware
and software products alone accounted for 69 percent of all revenue from the
Internet exchange, or auction, economy. Keenan Vision also projects that the
value of goods and services sold via Internet auction will reach $129 billion
in the year 2002.*
Auctions Incorporated into CNET Shopping Services
CNET's auction service will allow individual consumers, resellers and
manufacturers to auction their used, refurbished, "end-of-line" and surplus
items. Links to auction listings will be integrated into the relevant
shopping areas across the CNET network.
"At CNET, we have built what we believe is the largest directory of new
computer products and prices in the world. Our users have told us they also
want access to the vast market of used and refurbished computer goods," said
Kevin McKenzie, Associate Vice President of Shopping Services at CNET. "By
integrating auctions into CNET's network, we will greatly expand the choice we
give our users during the shopping process."
CNET's new auction service is expected to be integrated into the CNET
network during the second quarter of 1999. The CNET auction services division
will be based in CNET's Orange County, CA offices.
About AuctionGate
Founded by Nihad A. Hafiz, AuctionGate Interactive, Inc. is a privately
held California Corporation. Research and development of AuctionGate's Web
site and business model started in June 1997, and AuctionGate went live with
its Web site in January of 1998. AuctionGate is the operator of the
AuctionGate.com, the Internet auction site for large and mid size vendors and
business and home consumers.
About CNET
CNET, Inc. is at the leading edge of media companies, producing a branded
Internet network and television programming for both targeted and general
audiences. Online and on television, CNET is the leading authority on
computers, the Internet and digital technologies. CNET television programming
airs on USA Network, the Sci-Fi Channel and in national syndication, as well
in 40 foreign countries. CNET effectively owns 40% of Snap, a search and
navigation service for all Internet users, controlled by NBC. CNET also owns
approximately 2.3 million shares, or nine percent, of Vignette Corporation
(Nasdaq: VIGN), a manufacturer of premier Web publishing software.
This press release contains forward looking statements that are subject to
significant risks and uncertainties. Although the Company believes that the
expectations reflected in its forward looking statements are reasonable, it
can give no assurance that such expectations or any of its forward looking
statements will prove to be correct. Important cautionary statements and risk
factors that could cause actual results to differ materially from those
reflected in the Company's forward looking statements are disclosed under the
caption "Additional Factors that May Affect Future Results" in the Company's
latest quarterly report on Form 10-Q and under the caption "Management's
Discussion and Analysis of Financial Condition and Results of Operations --
Outlook and Uncertainties" in the Company's latest annual report on Form 10-K,
copies of which may be obtained from the Company.
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