RealTime IT News

Popmail Drops first announced it was considering options to divest its fully-owned Bellevue-based subsidiary in early November. has learned that the Texas-based company has recently sold the assets of to JBII, an entity controlled by the current management team at, for a $2.25 million, non-interest bearing, eight year secured promissory note.

Related to the sale of, Management anticipates that all remaining goodwill associated with the original purchase will be expensed in December 2000.

According to company officials, the sale of will result in further net cost reductions for, a move which positions the company one step closer to profitability. This follows last week's announcement of the Company's reduction of expenses at its wholly owned subsidiary PopMail Network.

"The business model of creating newsletters and e-business applications for high-end companies does not fit the business model of," said Gary Schneider, CEO of "While had revenue, its current revenue did not cover expenses and thus was in a different stage of development compared to other companies."

The CEO further stated that their Company would no longer support any business opportunities that are still in development or not cash positive.