theglobe.com Acquires Attitude Network
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The acquisition will be accounted for as a purchase and the companies expect to finalize the closing later this month. Financial terms call for theglobe.com to issue roughly 785,000 shares of common stock to Attitude shareholders and some holders of convertible notes.
theglobe.com will also assume $5.1 million of Attitude's debt and will assume all outstanding options and warrants of Attitude which will be exercisable for approximately 64,000 shares of new common stock. The stock to be issued by theglobe.com in connection with the acquisition will be "restricted" securities under the Federal securities laws, with certain registration rights.
The audience of the Attitude sites will augment theglobe.com community of 9.3 million users with an additional 2.36 million users. According to the companies, Happy Puppy and Games Domain together have the highest concentration of 18-44 year olds who shop online.
"The shopping and purchasing habits of this audience is one of the most attractive on the Web and is a perfect fit with our newly integrated shopping experience and soon to be launched auction service," said Todd Krizelman, the globe.com's co-CEO.
"The gaming industry is experiencing strong global growth which we fully expect to leverage as we extend and enhance theglobe.com community throughout the European continent," said Stephan Paternot, co-CEO, theglobe.com.
According to Attitude CEO David Rae, employees of the gaming company will remain in New York, and possibly work in theglobe.com's expanding office space.
"We're thrilled to bring an audience of gaming enthusiasts into the extended globe community," Rae said. "Our international team of gaming experts is looking forward to making theglobe.com the best site on the Web for interactive entertainment."