Popmail Drops IZ.com
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PopMail.com first announced it was considering options to divest its fully-owned Bellevue-based subsidiary IZ.com in early November.
Seattle.internet.com has learned that the Texas-based company has recently sold the assets of IZ.com to JBII, an entity controlled by the current management team at IZ.com, for a $2.25 million, non-interest bearing, eight year secured promissory note.
Related to the sale of IZ.com, Management anticipates that all remaining goodwill associated with the original IZ.com purchase will be expensed in December 2000.
According to company officials, the sale of IZ.com will result in further net cost reductions for PopMail.com, 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 IZ.com business model of creating newsletters and e-business applications for high-end companies does not fit the business model of PopMail.com," said Gary Schneider, CEO of PopMail.com. "While IZ.com had revenue, its current revenue did not cover expenses and thus was in a different stage of development compared to other PopMail.com companies."
The CEO further stated that their Company would no longer support any business opportunities that are still in development or not cash positive.