CNET Acquires AuctionGate Interactive
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CNET will issue about 50,000 common shares for all of AuctionGate's stock. CNET's new auction services division will be based in company's Orange County, Calif., offices.
The acquisition is expected to create a new revenue stream for CNET. Participating sellers in the new auction service will be charged listing fees. The new CNET auction service is slated for integration within company's network during the second quarter of 1999.
CNET said the acquisition will allow it to conduct person-to-person and business-to-business auctions of used, refurbished and surplus computer products.
"Online auctions of computer products represent a huge market and we have a clear opportunity at CNET to build the most active auction marketplace in the category," said Halsey Minor, CNET's chairman and chief executive officer.
"This acquisition further expands the product purchasing options for our users."
Kevin McKenzie, CNET's associate vice president of shopping services, said its the new service answers user demand for used and refurbished computer goods.
"At CNET, we have built what we believe is the largest directory of new computer products and prices in the world," he said.