RealTime IT News

Zap Wants Internet Back

Fish oil processor turned Internet play Zap Corp. said Wednesday it will work to develop a new network of Web sites. The news comes only a couple of months after the company said it was reviewing its Internet strategy.

The spin-off of fish refinery Zapata Corp., who first made news in May with a rejected bid to buy Excite, announced that after reviewing its business plans it will again take a dip in the Internet pool.

In the coming weeks Zap said it intends to reintroduce a new Zap.com page. The on-again, off-again Net company is also reviewing various relationships, alliances and agreements with other Internet companies and e-commerce businesses.

In April, Zap bought the e-zines Word and Charged from ICON CMT Corp. for $2 million. In July the company acquired over 20 Internet sites it planned for its Zap portal effort.

By mid-October Zap backed out of its Internet investments, claiming the market was unstable. Two shareholder lawsuits were filed in Texas, charging that the company took unfair advantage of a run-up in its stock. The backout also left the Zap-acquired sites uncertain of their future.

Zap officials attributed their about-face to stabilized markets, saying they believe the Internet still held great opportunities for the company.

"Since we began our strategic review two months ago, global financial markets have strengthened dramatically and the Internet sector, in particular, has been positively impacted," said Avram Glazer, president of Zapata.

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