To: T A P who wrote (9131 ) 3/12/1999 3:31:00 PM From: MoneyMade Read Replies (2) | Respond to of 15987
Here: get this out...CYSP By Darren Chervitz, CBS MarketWatch Last Update: 3:02 PM ET Mar 12, 1999 Internet Economy Internet Stocks SAN FRANCISCO (CBS.MW) -- Online retailer CyberShop has agreed to pay Yahoo to be featured on several categories in the portal's shopping channel, a source close to the negotiations told CBS.MarketWatch.com. The source declined to comment on the financial terms of the marketing agreement, saying only that it is a "long-term relationship." The deal is expected to be announced Monday. "Both parties felt the timing was finally right to do a deal. CyberShop has been around for several years, while Yahoo's shopping service has been gaining serious momentum," the source said. CyberShop (CYSP), which calls itself an online department store, and Yahoo (YHOO) have talked on-and-off for more than three years about coming together on a deal, but could never agree on terms, the source said. A spokeswoman at Yahoo declined to make a statement on the deal and CyberShop officials couldn't be reached for comment. The relationship could provide a boost for CyberShop shares, which have been languishing since the beginning of the year. On Friday, the stock gained 1 5/8 to 8 5/8 on heavier-than-average volume. That is still well under the stock's 52-week high of 30, reached on Nov. 30. At current prices, Wall Street values the company at about $55.1 million. CyberShop generated $4.8 million in sales and $8.9 million in losses during 1998. In March, Compaq (CPQ) completed an all-cash purchase of CyberShop rival Shopping.com (IBUY-BB) for more than $200 million. Shopping.com will become a division of Compaq's AltaVista Internet services unit. The company recently announced distribution deals with Amazon.com's "Shop the Web" service, E-Trade and also renewed its pact with America Online for this year. Cybershop is also featured on the Excite and Microsoft Web sites. Late last year, the company also launched electronics.net, a joint venture with Tops Appliance City, and egift.com. See related story. While the company did not detail specific results for the newer sites, it did say in a February press release that "early results ... are encouraging and support CyberShop's framework to pursue additional growth by opening other niche-oriented sites and further maximize the marketing, distribution and back office infrastructure already in place." Yahoo launched its shopping site in the fourth quarter of 1998 and signed up more than 3,400 merchants by the end of the holiday period. Jonathan Morris, executive vice president of apparel retailer Bluefly (BFLY), said its placement on the Yahoo shopping service has been a big plus. "It's very important to our business, and they're a great partner for us," Morris said. "And I think they're making improvements to the product that will only make it better and more important."