Allen Investment Helps ISDEX Soar to New Highs | Internet News

Allen Investment Helps ISDEX Soar to New Highs

Written By
Steve Harmon
Steve Harmon
Mar 15, 1999
2 minute read

The ISDEX finds a beat it can dance to as the Internet Stock Index soars to new highs led by billionaire Paul Allen’s up to $750 million buy in of Go2Net (NASDAQ:GNET) for up to 54% stake.

Allen’s Vulcan Venture unit agrees to buy $300 million in convertible preferred.

The venture firm will also make a tender offer for 5 million shares of GNET at $90. GNET soars 30% today on the news to $113.375. This was one of my top 10 picks for 1999. Others on that list that have been involved in major deals include GeoCities (NASDAQ:GCTY), Lycos (NASDAQ:LCOS), CMGI (NASDAQ:CMGI) as LCOS shareholder and as a new addition to the NASDAQ 100 as of March 18. Overall, the Internet firms are starting to be the center of all major M&A. I think there’s more major deal flow to come among the top 25 Web sites. Today’s snapshot:




























 

15-Mar-99

point change

% change

ISDEX

508.11

35.45

7.50%

NASDAQ

2,431.44

49.91

2.10%

DJIA

9,958.77

82.42

0.83%

  • Sportsline (NASDAQ:SPLN) plans to sell $150 million convertible subordinated notes. I see the move indicative of the new capital requirements to compete on a global level for any Internet company that wants to grab a broad category. It’s getting more expensive. The offering comes on the heels of Sportsline’s announcement that its page views hit an all-time record over this past NCAA basketball weekend: 65 million page views, up 72% vs. last year.
  • Egghead (NASDAQ:EGGS) announces a 5.02 million share offering at $13.50 per share in what looks like a trend for Internet companies: sell more stock, cash up to scale up. Recall that March 10 Infospace (NASDAQ:INSP) announced plans to sell 2.8 million shares, 1.5 million from the company and the rest from selling shareholders.

    HotWatch ’99 by Steve Harmon offers a monthly insight into the hottest stocks in the Internet, his top picks for 1999. Last year’s picks by Steve gained 312%. Each month a new report, delivered to you click here for more info


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