Fashionmall Buys What's Left of Boo
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Visitors to boo.com are now immediately diverted to the U.S. fashion portal, a popular site that combines an online shopping mall with fashion content.
Few details about the acquisition were available early Friday, but it is clear that fashionmall.com will reap a huge initial increase in page accesses.
In a statement, fashionmall.com said it was very proud to announce its acquisition of boo.com and would be "working diligently over the next few weeks to position Boo as the ultimate global fashion portal - to deliver all the great things you loved about Boo."
Fashionmall.com, which is operated by fashionmall.com, Inc., derives its revenue mainly from selling space on its site in the form of leases, advertising and sponsorship. It prices these short-term (3-12 month) leases on a cost-per-click basis and gets paid for the traffic it sends to its clients' sites.
With revenues up from $219,000 in 1996 to $3,690,000 in 1999, fashionmall.com has shown a respectable growth, if not the meteoric success of many other Internet enterprises.
Having reportedly paid more for the boo.com business than the £0.25 million paid by Bright Station for Boo's e-commerce software, fashionmall.com will be looking to turn its acquisition into a springboard to the European market.
However, by far the greater part of boo.com's massive investment was in e-commerce technology development, the results of which are not part of the deal with fashionmall.com.