Internet portal provider InfoSpace Inc. Thursday bought Go2Net, Inc. for about $4 billion in stock.
InfoSpace plans to offer interactive gaming and increase its e-commerce offerings with the acquisition.
InfoSpace made the announcement in tandem with its
second quarter results, which reported a pro forma net loss of $3.3 million
or one cent per share for the second quarter.
Terms of the agreement requires that InfoSpace issues 1.82 shares of its
common stock for each Go2Net common stock. The
transaction has been approved by the board of directors from both companies
and waits on shareholder approval. The merger is expected to be complete by
the end of the year.
Paul Allen, whose Vulcan Ventures
has a 30 percent stake in Go2Net, said the merger is a good fit for
both companies.
“I originally invested in Go2Net because they offer superior technology and
share my vision for the broadband world,” Allen said. “Combining these
companies will create an unparalleled cross-platform infrastructure
company. We consider this to be very strategic to our overall vision for
the wired world, and look forward to a mutually beneficial long-term
relationship.”
Arun Sarin, InfoSpace chief executive officer, said the two announcements
mark a turning point in the company’s operations, allowing broadband and
narrowband applications in today’s rapidly converging market.
“Today marks another historic milestone in the history of the rapid
evolution of InfoSpace,” Sarin said. InfoSpace turns in another record
quarter of rapid growth and announces the merging of two powerful entities
to create the premier global company delivering the services that are
fundamentally changing how people around the world communicate, access
information, conduct commerce and manage their lives across rapidly
converging media platforms such as wireless, DSL and broadband.”
InfoSpace has spent the past few weeks signing lucrative wireless portal
deals with Verizon Communications
and SBC Wireless
.
The company already has a signed relationship with AT&T Wireless and ALLTEL Corp.
.
Customers using digital phones will access the Internet through the
transparent InfoSpace homepage specifically branded for each the phone company.
