RealTime IT News

ZAP Snags Sites, Splits Company

Zapata Corp., the Internet newcomer with an interest in a fish processing company, today announced that its ZAP Corp. Internet unit will either purchase or invest in 21 Web sites and e-commerce entities, and will be split off to form a separate unit.

Zapata said in a statement today it plans to divide its company into two publicly traded entities with Zapata Corp. continuing operation of the marine processing business, and ZAP Corp. comprising the Internet operation.

The company's Board of Directors also set up a program so that the company can repurchase 5 million shares of its outstanding common stock.

Zapata said the newly acquired Web sites will become part of its portal offerings scheduled to debut online later today.

The company first entered the online arena in late April when it purchased then defunct online publications Word and Charged.

A month later the company made headlines and created some industry buzz when it offered to buy Excite Inc. The $1.68 billion stock offer generated tremendous publicity for the Internet-wannabe, but was instantly zapped by Excite which said there was a "complete lack of synergy between the two companies' businesses."

ZAP president and CEO Avram Glazer said in a statement today that the ZAP.com portal will receive heavy promotion to build name recognition. Glazer also said ZAP expects to create strategic partnerships with several other media outlets.

"The new ZAP.com is a cutting edge portal to the Internet which will offer almost everything today's avid computer user is looking for," said Glazer. "ZAP's goal is to become one of the largest Internet companies in the world. We have the resources to make ZAP's strategy a reality and to lead the upcoming consolidation of this industry."

Besides operating the Word and Charged sites, ZAP announced it plans to purchase:

In addition, ZAP will take an investment interest in Bibliofind and Mass Music. ZAP declined to make public all of its intended Internet purchases, and no financial details were released.