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Technology Stocks : InfoSpace (INSP): Where GNET went! -- Ignore unavailable to you. Want to Upgrade?

To: RTev who wrote (5207)	5/7/1999 5:34:00 AM
From: B. A. Marlow	Read Replies (2) \| Respond to of 28311

Two important highlights from the "Seattle Times" piece, RTev: "But there's always the possibility that he could raise his offer. It's up to him." Pacific Crest Securities yesterday [03/16/99] puffed up its already optimistic estimate of the stock's performance. Analyst Jeff Goverman raised his formal "price target" from $115 to $250 a share within a year and conceded even that might be $100 too low. And here's the full Bloomberg piece once again. In reading it, one can reasonably conclude that Paul Allen may not be finished building his stake in GNET. BAM *** Technology News Fri, 07 May 1999, 5:25am EDT Paul Allen's Bid to Buy 54% of Go2Net Falls Short (Update1) By Greg Chang Paul Allen's Bid to Buy 54% of Go2Net Falls Short (Update1) (Updates with details in 2nd, 9th paragraphs.) Seattle, May 6 (Bloomberg) -- Go2Net Inc., an Internet directory, said billionaire Paul Allen fell short in his bid to acquire 54 percent of the company, as shareholders rejected his offer to buy stock at a discount. Allen, who co-founded Microsoft Corp. with Bill Gates, still stands to own rights to about 34 percent of shares outstanding. He agreed on March 15 to buy 300,000 shares of Series A convertible preferred stock from the company for $300 million, 1.4 million shares of common stock from Go2Net executives and directors for $90 a share or $126.3 million total, and to make a tender offer to Go2Net shareholders for 3.6 million shares for $90 each, or $323.7 million. The offer expired April 15 with no shares tendered, according to the company's quarterly report, as Go2Net shares have soared as high as 187 after Allen made his offer. Without the tender offer, Allen's total investment in Go2Net will be $426 million. ''The reason they made the tender offer at $90 was that they were concerned the stock might drop,'' said Dalton Chandler, an analyst with Needham & Co. ''As it turned out, the stock didn't need any support.'' Worries About Share Price Go2Net may have been worried that investors who bought Go2Net shares expecting the company to be acquired at a high premium would have pushed the price down after Allen's bid, Chandler said. Allen's tender represented a 3 percent premium from the previous day's close of 87. Allen wants to link Go2Net with high-speed Internet access offered through the cable television empire he is building with his Vulcan Ventures Inc. investment company. He has already purchased 167,507 shares of the preferred stock. Allen is expected to complete the purchase of the remaining 132,493 shares of preferred stock by the end of June, pending shareholder approval. The 300,000 shares of preferred stock can be converted into 4.54 million shares of common stock for $66.11 a share. The quarterly report was filed with the U.S. Securities and Exchange Commission. Shareholders Meeting Go2Net will hold a shareholders meeting June 17 to vote on Allen's purchase of the remaining preferred shares, his purchase of the common stock from the company insiders and expanding the company's limit on shares outstanding. Go2Net also wants to split its stock 2-for-1. Allen will have the right to nominate two out of five directors, Go2Net officials said. Shareholders will vote on board nominees William Savoy and Diane Daggatt from Vulcan; Go2Net Chief Executive Russell Horowitz; Dennis Cline, an executive with security software maker Network Associates Inc.; and money manager William Fleckenstein. Go2Net shares fell 11 1/2 to 133. The shares have soared almost eightfold this year on optimism spurred in part by Allen's purchases. Revenue soared to $4.33 million from $1.54 million in its fiscal second quarter, the most recent results. Seattle-based Go2Net runs a network of Web sites, with Internet directories, financial information, games and free sites for small businesses. The company had 12.7 million shares outstanding as of March 31.