Internet Market Close Report for 1998.09.10



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  • Infoseek (NASDAQ:SEEK) pays $26 million over the next two years to be Microsoft’s WebTV exclusive search and navigation provider. Terms: $15 million in advance for first 5 quarters and remainder afterwards. Infoseek gets all ad revenue to a undisclosed amount and splits above that. WebTV delivers 40 million page views per day, 80% of its users have never or rarely go online via PC. Average WebTV sub signs in three times a day. Infoseek gets a guarantee of at least 4.5 billion impressions from WebTV. Once Disney-Infoseek’s new site goes live — reported to be called “” — combined with this agreement, suddenly makes SEEK look like more like an emerging leader than many thought.

  • E*TRADE (NASDAQ:EGRP) debuts its new site aimed at being more of a destination, basically opening up trading subscriber features to those who will register for the site, even without an account. Having looked it over it still needs a long way to go to be a hub. does a better job as do many others. It’s the data/analysis that matters.

  • Mindspring (NASDAQ:MSPG) agrees to acquire AOL (NYSE:AOL) Sprynet subscribers for between $35 million to $40 million or about $208 per sub (180k subs in U.S. and Canada). The deal includes some equipment. With it Mindspring continues its aggressive growth pattern. Recall that it acquired PSINet’s 100,000 consumer accounts last year? By the way, notice looks more like a gateway now also. Having that dialup revenue may be very attractive to the public Internet firms that need more revenue.

    $20 a month per subscriber is a far better revenue stream than advertising alone, as AOL well knows. It generates 86% of revenue from access. Can any of the larger sites afford not to have access revenue, not for long if they want to sustain valuation and growth.

    LaunchPad Pavilion, part of Fall Internet World ’98, the world’s largest Internet industry trade show held Oct 5 – 9, offers exhibit space for startups ONLY at a reduced price in order to meet their often limited capital available at the startup stage. It is Mecklermedia’s way of letting the newbies get their voice heard. If you or a friend is at a Internet startup and want to exhibit at Fall Internet World (expected attendance is more than 50,000) in New York City’s Javits Center then contact Reed Bocchino 203-341-2826 or email: mailto:[email protected]

    Internet Investment Symposium ’98 @ Fall Internet World!

    The Internet investment event of the year! New York City, Oct. 8-9 as Steve Harmon talks investments with some of the top names in the industry…top execs of GeoCities, CMG Info, DoubleClick, venture capitalists doing the $ billion deals, debuts hot startups at Startup Live!, and debates top stocks with the leading Internet stock analysts on Wall Street (Steve was one of them) selected by CBS MarketWatch!”

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