MARKETWATCH.COM, INC. AGREES TO ACQUIRE BIGCHARTS INC. IN A $166 MILLION DEAL
MARKETWATCH.COM, INC. AGREES TO ACQUIRE BIGCHARTS INC. IN A $166
MILLION DEAL
BigCharts Acquisition to Strengthen MarketWatch.com's Position as a
Leading Web Site for Comprehensive, Real-Time Business News, Financial
Programming and Analytic Tools
SAN FRANCISCO, April 29 /PRNewswire/ -- MarketWatch.com, Inc.
(Nasdaq: MKTW) today announced it has signed a definitive agreement to
acquire BigCharts Inc., one of the top-ten trafficked financial sites
and an industry-leading provider of objective, data-driven online
financial content for self-directed investors. The transaction is
valued at approximately $160 million in stock and $6 million in cash.
The acquisition will enable MarketWatch.com to increase the number and
quality of financial tools it provides investors, enhancing its
position as a leading, branded web site for comprehensive, real-time
business news and financial programming.
BigCharts will be able to integrate MarketWatch.com's proprietary
real-time news and commentary into the BigCharts suite of products that
it markets to its customers, including many of the major online brokers
and financial services companies it serves. BigCharts provides content
to 7 of the top 10 online brokers, and through those partnerships and
others, its content is available to approximately 80% of all online
investors.
"We believe that BigCharts is one of the best in the business at
producing useful, attractive and efficient tools for investors," said
MarketWatch.com President and CEO Larry Kramer. "They add value to
information through packaging and interactive tools. MarketWatch.com,
on the other hand, produces the fastest and best financial news on the
Internet. Both of us are at the top of the game, and we believe that
each of us can contribute exactly what the other needs to be even
better. By combining these businesses we have the opportunity to
create a dominant company by substantially increasing our audience
reach and pursuing multiple revenue streams."
"BigCharts' objective is to be the leader in providing online financial
content to self-directed investors by delivering objective, data-driven
content rich in visual design and interactivity," said Philip D.
Hotchkiss, President and CEO, BigCharts Inc. "As a company, we have
been very successful in meeting our objective. We have built and hold
an audience approaching 1 million unique monthly users at
bigcharts.com (according to Media Metrix), established a
broad network of content distribution partners and built close
relationships with the market leaders in online brokerage, financial
publishing and portals. Under the CBS.MarketWatch.com umbrella, we
have the opportunity to leverage their distribution and reach to
broaden the services we provide to our content licensing clients and to
enhance the user experience at BigCharts.com."
Under the agreement, MarketWatch.com, Inc. will exchange approximately
2,175,000 shares of its common stock (including shares issuable upon
exercise of assumed BigCharts options), and pay $6 million in cash in
exchange for all outstanding BigCharts Inc.'s securities. The
acquisition, which has been approved by both companies' Boards of
Directors, is subject to customary conditions including approval by
BigCharts' stockholders. The deal is expected to close within 30 to 60
days. MarketWatch.com, Inc. will account for this transaction under
the purchase method of accounting. BigCharts Inc. will retain its key
management and be operated as a wholly owned subsidiary of
MarketWatch.com, Inc. In addition to continuing to serve as BigCharts'
President and CEO, Philip Hotchkiss will join MarketWatch.com's Board
of Directors.
About MarketWatch.com, Inc.
MarketWatch.com, Inc., cbs.marketwatch.com (Nasdaq: MKTW)
is a leading Web-based provider of comprehensive, real-time business
news, financial programming and analytic tools. The editorial team
contributes financial and economic reports to national CBS radio news
feeds, CBS EVENING NEWS WITH DAN RATHER, and CBS News' THIS MORNING.
MarketWatch.com was launched in October 1997, as a joint venture
between CBS Broadcasting Inc., a wholly owned subsidiary of CBS
Corporation (NYSE: CBS), and Data Broadcasting Corporation,
dbc.com, (Nasdaq: DBCC), the country's leading provider of
real-time financial and market information for the individual investor.
CBS and DBC are controlling stockholders of MarketWatch.com.
MarketWatch.com is headquartered in San Francisco and has bureaus in
New York City, Washington D.C., Los Angeles, London and Tokyo.
About BigCharts Inc.
BigCharts, Inc., based in Minneapolis, is a leading provider of
licensed online financial charting content to electronic brokers,
financial publishers and portals. Based on Media Metrix data, its
Internet site, BigCharts.com, is one of the most popular financial
destination sites on the web. It receives critical acclaim for design,
ease of use and depth of functionality. In addition, the company
designs, produces and markets interactive financial charting products
to institutional clients in the online brokerage, online publishing,
Internet portal, and online Finance industries.
Forward-looking statements in this release are made pursuant to
the safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. You are cautioned that such forward-looking statements
involve significant risks and uncertainties. Actual results may differ
materially from those in the forward-looking statements due to a number
of factors, including and without limitation: (i) risks to the merger,
such as, risks that the proposed merger may not be consummated, risks
involved in assimilating BigCharts, risks involved in integrating,
retaining and motivating key BigCharts personnel, risks related to
integrating and managing geographically-dispersed operations, risks
related to integrating the technologies and infrastructures of the
companies, and risks related to the acceptance by BigCharts' brokerage
customers of the merger; (ii) risks inherent in BigCharts' business,
such as, its dependence on short-term customer contracts, its
dependence on a small number of customers for a significant portion of
its revenues, its dependence on maintaining relationships with key
customers, and the extremely limited operating history of BigCharts on
which to base any revenue projections; (iii) risks to MarketWatch.com
of the increased negative cash flow and increased operating expenses
arising out of, among other items, the proposed BigCharts merger; (iv)
the risk that BigCharts customers and distribution partners will not
utilize any additional services of the combined company; (v) risks
related to the achievement of new revenue to MarketWatch.com from the
BigCharts operations; and (vi) risks relating to MarketWatch.com's
ongoing operations as detailed in MarketWatch.com's filings with the
Securities and Exchange Commission. In particular, see the risk factors
described in MarketWatch.com's Form S-1 Registration Statement for its
initial public offering (SEC File Number 333-65569), and in its Form
10-K/A for the fiscal year ended December 31, 1998. MarketWatch.com
does not assume any obligation to update the forward-looking
information contained in this press release.
SOURCE MarketWatch.com, Inc. |
