RealTime IT News

Go2Net Invests $30 Million in Online Broker

National Discount Brokers Corp. Monday signed a deal with Go2Net, making it the exclusive online broker across the Web network for the next three years.

Go2Net (GNET) will receive an annual minimum payment of $7.5 million from NDB.com during the three-year term. The total value of the deal is estimated at about $30 million.

The deal also includes a marketing and promotion factor, in which NDB.com will be featured throughout the Go2Net Network and Silicon Investor, Go2Net's premier financial discussion and information site. Investment firm Vulcan Ventures and Go2Net will purchase 500,000 shares of common stock of National Discount Brokers Group at a purchase price of $27 per share and warrants to purchase an additional 500,000 shares of common stock at a purchase price of $33 per share.

Go2Net will develop a co-branded version of the Silicon Investor financial discussion boards to allow NDB.com's clients view and post messages within NDB.com. As part of the agreement, Vulcan Ventures Inc. and Go2Net have agreed to purchase up to 1 million shares of common stock of from NDB.com's parent company, National Discount Brokers Group Inc. (NDB).

Go2Net Chairman and Chief Executive Officer Russell C. Horowitz will join the National Discount Brokers Group board of directors.

The agreement makes Silicon Investor, acquired and incorporated into the Go2Net Network in 1998, the first online financial discussion site with complete brokerage capabilities, complementing Silicon Investor's community, financial research, analytics and editorial content offerings. Silicon Investor and NDB.com expect to have seamless content integration.

"This is an important agreement on many levels, as National Discount Brokers is exceptionally well positioned to not only meet the needs of Silicon Investor's membership, but to excel in an online marketplace that demands high levels of quality brokerage services," said Russell C. Horowitz, Go2Net chairman and CEO.