Ad network Flycast Communications Corp. (FCST) expects to report total revenues of between $11 and $12 million
for the third quarter, up about 70 percent from revenue of $6.4 million
recorded in the prior quarter.
The company, soon to be acquired by Internet holding company CMGI Inc., also said it expects operating
losses for the third quarter to be less than currently published consensus
estimates.
Flycast said its year-to-date revenue through the first three
quarters of 1999 will exceed $22 million, compared to $3.9 million for the
first three quarters of the prior year.
CMGI will issue .4738 of its shares for every share of Flycast. The stock
deal is expected to close in January 2000.
CMGI also holds the option to
purchase up to 19.9 percent of Flycast’s stock if the merger agreement falls
through. The company’s stock closed at 45-1/2, up sharply after the
acquisition announcement.
On September 20, CMGI announced an agreement to acquire AdForce Inc. in a $500 million stock deal.
Only days early the Internet holding company said it would acquire AdKnowledge in a stock deal valued at
approximately $193 million.
The moves bolster a CMGI Internet advertising
arsenal that already includes ad network Adsmart and Web measurement firm I/PRO.
Flycast’s flagship offering, the Flycast Network, consisting largely of small
and medium sized Web sites, reaches more than 25 million people a month, or
41 percent of the Web in the U.S., the company says.
