Excite, Infoseek Announce Acquisitions

Excite, Infoseek Announce Acquisitions

From The Search Engine Report
April 30, 1998

Excite announced on April 6 that it would acquire Classifieds2000, in a stock swap valued at $48 million.

Classifieds2000 has provided classified ad searching services to Excite and WebCrawler since the middle of last year. It also provides these services to Excite competitors HotBot, Infoseek and Lycos.

Excite says its acquisition will not affect these competing partnerships. It will allow Classifieds2000 is to operate independently, while it receives the revenues.

Infoseek announced on April 14 that it would acquire the WebChat Broadcasting System, a chat provider with 2.7 million members. The acquisition is through a stock swap valued at $6.7 million.

Infoseek hasn't lacked chat. It's offered that since last October, with former partner TalkCity. Instead, the WBS purchase is meant to help correct its lack of personalized services, which in turn provides it with a well-defined member base.

Lycos, Excite and Yahoo all have personalized services such as free email, and those who enroll become members with known demographics, draw from the membership forms. That makes it easier to target advertising at these people -- assuming they haven't lied about themselves when signing up, of course.

With WBS, Infoseek now has its own core membership upon which to build.

Infoseek Steps Up Web Gateway Push With Chat Site Buy
Internet World, April 20, 1998

More details on the WBS acquisition, discussing strengths and weaknesses.