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Technology Stocks : DrugStore.com -- Ignore unavailable to you. Want to Upgrade?

To: Paris who wrote (10)	6/24/1999 7:18:00 PM
From: $Mogul	Respond to of 60

Drugstore.com's Mystery Deals Big deal: A couple of brick-and-mortar companies buy into a Net business. These days, that's a cut-and-paste headline on any business page. The trouble with Drugstore.com's transaction with Rite Aid and GNC is that it's hard to tell just how big a deal it is. That's because Drugstore.com won't say. It will tell you that drugstore chain Rite Aid shelled out $7.6 million for a 25 percent stake in the online pharmacy business, and that GNC, a retailer of diet supplements, snatched up 8 percent for $2.4 million. But 25 and 8 percent of what? Drugstore.com preferred not to tell Wired News' Joanna Glasner. Or anyone else for that matter. Glasner noted that the two deals gave Drugstore.com an implied value of $30 million, but that a Drugstore.com spokeswoman insisted the stakes were worth significantly more because the cash was "only a small part of the consideration." Despite filing for an IPO, the company has not revealed how many shares it has or how many it plans to sell. A spokeswoman told Glasner more information is forthcoming. In the meantime, investors have little to go on. Besides the fact that it's a Net company, of course. Drugstore.com Sells Big Stake to Rite Aid, GNC wired.com