AT&T Corp. pays $60 million for stake in provider of Web data to phone users
Article Abstract:
AT&T Corp. will pay $60 million for a minority stake in Tellme Networks Inc., a company offering Internet telephone services.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 2000
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E*Trade to announce pact for Telebanc; acquisition would advance the online broker's aim to be financial 'portal.'(E*Trade Group Inc.; Telebanc Financial Corp.)(Company Business and Marketing)
Article Abstract:
Online brokerage E*Trade Group Inc. is expected to announce deal to acquire Telebanc Financial Corp., one of the few online banking concerns, in a stock transaction valued at around $1.8 billion. This will be the first combination of an online bank with an online broker. The deal should help E*Trade attain its goal of becoming an online financial 'portal' site able to offer various types of financial services beyond just brokerage services. The deal comes as competition in the online-brokerage industry becomes even more heated, especially with the noteworthy entrance of Merrill Lynch & Co. into the online market. Telebanc Financial is the holding company for Telebank, one of the few online banks that serve customers without any actual branch offices. The deal also shows the willingness of E*Trade to use its large stock multiple to acquire other online financial firms. E*Trade trades at 13 times its projected annual revenue, and is paying around five times projected revenue for Telebanc. Each Telebanc share will be exchanged for 2.1 shares of E*Trade, translating into stock valued at $93.45 a share.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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Gateway is in talks to acquire EarthLink; buying Net service provider could help PC maker in its effort to expand
Article Abstract:
Gateway Inc. is in preliminary discussions to acquire EarthLink Network Inc., an Internet service provider, as it plans to expand its operations beyond direct sales of personal computers. Gateway has already taken some steps in this direction, buying a stake in an online computer software and accessories reseller. EarthLink's strategic alliances have become more important as more Internet users look forward to using high-speed broadband connections. However, the base of its business remains in its unlimited Internet access service that costs $19.95 a month via the slower dial-up phone connections. A combination with a computer seller could provide a new source of customers for EarthLink, which competes mainly with America Online Inc. and Internet service offerings of AT&T Corp. and Microsoft Corp. Microsoft has also considered buying EarthLink, as well as other Internet access providers. Gateway recently entered this business with its own service called Gateway.net. Still, any agreement to acquire part or all of EarthLink would require the approval of long-distance firm Sprint Corp., which owns almost 26.5% of EarthLink and entered into a strategic alliance with the firm in 1998. Sprint may make its own counterbid. EarthLink shares gained $9.625, or 20%, to reach $57.25 on news of the possible purchase, putting its market valuation at $1.8 billion. Last year, the company had a loss of $60 million on revenue of $176 million. Shares of Gateway, whose earnings were $346 million on revenue of $7.47 billion last year, fell 68.75 cents, or $1.1%, to $64.75.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1999
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