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October 24, 2000
BigVine Makes Strategic Merger With High-Profile Portal AllBusiness.com
Online barter company BigVine has propitiously taken advantage of an opportunity presented, merging with one of the highest profile small-business portals in cyberspace-AllBusiness.com. It's a move that should pay big dividends down the road.
AllBusiness was founded in 1998 and provides business solutions to the small business sector. NBCi purchased AllBusiness last February for $225 million in stock. But, because AllBusiness was not yet profitable, the company's losses were a drain on NBCi's earnings. . . which affected its stock price.
It's assumed the spin-off of AllBusiness should allow NBCi to reach profitability faster. NBCi's stock is trading around $5 a share, down from its high of $106 in January.
The new stand-alone company, AllBusiness.com, and will see BigVine's barter technology becoming the barter exchange platform which will reach a prospecting database of more than 1 million small businesses with 750,000 e-mail subscribers.
The merger is a coup for Bippy Siegel, BigVine's 36-year-old CEO. He will become the CEO of the new company, headquartered in San Francisco. And the former BigVine shareholders should be elated with the transaction, including venture capitalists Kleiner Perkins Caufield & Byers, American Express, and buyout specialists Kohlberg Kravis Roberts & Co. Aggregately they will own 51%, with NBCi owning the other 49%. (General Electric holds a 39.3% interest in NBCi.)
Reportedly, NBCi will also put another $15-$20 million into AllBusiness, which will include on-air promotional time on NBC-TV and CNBC (NBC's cable outlet). This additional investment by NBCi matches the amount of money which has already been invested in the building of BigVine.
Exchangemall.com Launched At Famed Hollywood Palladium Press Conference
Mark Savoy, CEO of Exchangemall.com contends he is introducing the premier virtual marketplace for commerce without currency. The site for the announcement on Tuesday, at 10:30 a.m. was in the Palladium's Champagne Lounge at the famed Hollywood site.
Exchangemall looks to set a new standard for barter by accepting exchangemall.com barter dollars, or trade dollars from other trade exchanges, as well as other currencies (scrip, due bills, etc.). The portal will also facilitate direct trades between parties. On the site, users can create a "personal store" to barter their products/services.
Oxygen Media Bartering 30% - 50%of Its Company To Strategic Investors
The woman's cable TV channel, Oxygen Media, is on a search for strategic investors and partners who will give it a higher profile and more viewers. Oxygen is offering stock warrants which are priced such that, should Oxygen go public anytime soon, investors would profit handsomely.
Barter payments for the stock could include "carriage" (time on the choice analog channel tier where CNN and other favorites are carried), programming resources, or some other type of strategic support.
Here And There. . .
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