|Amazon.com Acquires Two Leading Internet Companies|
Innovators PlanetAll and Junglee to Enrich Customers' E-Commerce Experience
SEATTLE, Aug. 4, 1998 -- Leading online retailer Amazon.com, Inc. (NASDAQ: AMZN), today announced the signing of definitive agreements to acquire two innovative Internet companies to enrich its e-commerce experience for customers.
In separate transactions Amazon.com has agreed to acquire:
PlanetAll is not only the best way to keep in touch with business associates and friends but also to get back in touch with old friends. Users have complete control over their own contact information and decide what information they want to share with others on a person-by-person basis. PlanetAll's service is compatible with personal information managers (PIMs) and personal digital assistants (PDAs), such as Microsoft Outlook and 3Com Palm Pilot.
"PlanetAll's goal is to make staying in touch with friends and business contacts effortless," said Jim Savage, CEO of PlanetAll. "Amazon.com allows us to take the vision of PlanetAll's founders, Warren Adams and Brian Robertson, to an even larger audience. We're thrilled to join Amazon.com's world-class team that cares as deeply as we do about providing meaningful services that enrich people's lives."
"As an investor and partner, we recognized early on that this technology has enormous promise with widespread applicability," said Bob Davis, CEO of Lycos, which holds a stake in PlanetAll. "We look forward to continuing to provide PlanetAll's secure and feature-rich service to Lycos users."
PlanetAll has integrated its service within the sites of a number of Internet leaders, including Lycos and GeoCities, as well as numerous universities and professional associations. Amazon.com intends to operate PlanetAll as a wholly owned subsidiary located in Cambridge. Savage and the two cofounders will remain with the company.
Junglee has developed breakthrough database technology that can dramatically enhance customers' ability to discover and choose from among millions of products online. To date, two of the markets Junglee has targeted have been online retailing and online recruitment. Junglee's customers and partners in these markets include Yahoo!, Compaq, Snap!, six of the top seven newspaper companies, and many other new-media companies. All founders of Junglee will remain with the company.
"Junglee has assembled an extraordinary team of people," Bezos said. "Together we'll empower customers to find and discover the products they want to buy."
"This is a significant opportunity for all of us at Junglee to extend our technology well beyond our current base," said Ram Shriram, President and COO of Junglee. "With Amazon.com, we can address the larger challenges of e-commerce sooner -- and on a broader scale -- than we could have alone."
Amazon.com will acquire 100 percent of the outstanding shares and assume all outstanding options of Junglee and PlanetAll in exchange for equity having an aggregate value of approximately $280 million. Amazon.com will issue approximately 800,000 shares and assume all outstanding options in connection with the acquisition of PlanetAll and anticipates accounting for this transaction as a pooling of interests. Amazon.com will issue approximately 1.6 million shares and assume all outstanding options in connection with the acquisition of Junglee and anticipates accounting for this transaction under the purchase method of accounting. Each transaction is expected to close within the quarter, subject to customary closing conditions.
This announcement contains forward-looking statements that involve risks and uncertainties that include, among others, Amazon.com's limited operating history, the unpredictability of its future revenues, and risks associated with capacity constraints, management of growth, new business opportunities, international expansion and business combinations. More information about factors that potentially could affect Amazon.com's financial results is included in the company's Annual Report on Form 10-K for the year ended December 31, 1997, and quarterly report on Form 10-Q for the quarter ended March 31, 1998, both filed with the Securities and Exchange Commission.
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