GeoCities paid $2 million in cash plus 775,000 shares of stock in exchange
for all outstanding shares and options of Starseed.
Starseed also maintains the free Web service WebRing, which has 66,000 separate rings
and more than 900,000 members. WebRing will remain a free service with its
own identity and will retain its current management.
GeoCities said Web Ring complements its strategy of promoting membership,
visitation and commerce.
“This acquisition makes sense from every angle,” said Thomas R. Evans,
president and chief executive officer of GeoCities. “By combining our core
competency with exceptional consumer ease-of-use, we believe we are setting
the new standard for online interest groups and personal affinity navigation.”
Charley Lanusse, president and chief executive officer of Starseed, said
the combination will create a momentum that will benefit members of both
“Our proprietary technology, knowledge base and membership are highly
complementary. Additionally, we are a small, tight-knit company with a
family-like atmosphere that we hope to preserve. We have been impressed
with the GeoCities’ management’s sensitivity to our employees and culture
and believe our employees and ring members will benefit from GeoCities’
infrastructure,” he said.