CNET Acquires AuctionGate Interactive

CNET Inc. Monday acquired
computer products auction site AuctionGate Interactive, Inc. in
a stock swap valued at $5.8 million.

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.

Recently, CNET also acquired ShopBuilder developers NetVentures, which provides turnkey e-commerce solutions enabling small and
midsize computer makers and resellers to build online stores.

“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.

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