To: Scrapps who wrote (2003 ) 3/15/1999 9:39:00 PM From: Hawkmoon Read Replies (3) | Respond to
Bill Fleckenstein's analysis on the GNET deal from today's Market Rap: stocksite.com Internet stocks hot... Internet stocks were red-hot for two reasons: First, the Internet conference mentioned earlier, and second, we had another change of control in the Internet sector. None other than the folks who bring you the Rap, Go2Net (GNET), now will be controlled by Paul Allen's investment arm, Vulcan Ventures. The terms of the deal are such that Go2Net now is about a $2 billion company. By my calculations, it looks as though the folks at Vulcan bought a convertible preferred, which worked out to a cost probably in the mid-60s, and then they bought some stock from management. They're tendering for stock in the open market at $90. If all this stock were purchased as planned, it would give them an average cost, by my calculations, of somewhere in the high 70s. Given that the stock now is trading at $113, it looks like they've already made themselves a few hundred million dollars. This obviously will be an important linkup, and on a personal note I'd like to say congratulations to everyone at Go2Net. As always in the interest of interpersonal full disclosure, I am lucky shareholder of Go2Net.
