To: Taby who wrote (341 ) 5/24/1999 4:07:00 PM From: Sir Auric Goldfinger Read Replies (1) | Respond to of 405
Looks like someone is trying to cover their tracks:"DJ Visual Data Off Co. To Pay 'Reasonable' Fee >VDAT By Nicole Ridgway NEW YORK (Dow Jones)--Visual Data Corp.'s (VDAT) shares fell 15% Monday amid confusion over the sponsorship fees the company will pay for its online venture with streaming media provider Broadcast.com (BCST), said Chief Executive and President Randy Selman. On Sunday, Visual Data, which develops original video content for the Internet, announced that it will launch an online travel video channel to be hosted on Broadcast.com's Web site. As part of the deal, Visual Data will pay a sponsorship fee for Broadcast.com's multimedia advertising and hosting services. Although Selman couldn't disclose the amount of the sponsorship fee, he did note that it's a "small" and "reasonable" fee, which includes both advertising and sponsorship expenses. And he noted that the benefits derived from increased exposure to Web users will far outweigh those costs. Currently, Visual Data records about 500,000 viewer hits a week, he said. Meanwhile, Broadcast.com boasts one million hits every day. Having a link on a site with that kind of traffic translates into an expectation that Visual Data will see a "significant increase in viewership," the executive said. And since Visual Data derives its revenue from sponsorship fees, online bookings and per-hit fees, the increased viewership could have a "sudden impact" on the company's fourth-quarter revenue, he said. The site, which is expected to be launched in June, could begin generating revenue as early as July, he added. Yet, Selman believes Monday's sell-off is a result of confusion about its venture with Broadcast.com and the subsequent benefits of the deal. "We think that they just really don't understand the nature of the transaction," he said. In addition, the executive said a selloff in Internet-related stocks and "high expectations" among investors regarding the deal have dampened the company's share price even further. The Pompano Beach, Fla., company's shares recently changed hands at 30 5/8, down 5 3/8, or 14.9%, on volume of 1.3 million shares, compared with average daily volume of 723,000. - Nicole Ridgway; 201-938-5174 (END) DOW JONES NEWS 05-24-99 01:17 PM - - 01 17 PM EDT 05-24-99