Excite Expands into Classifieds with $48 Million Buyout

Strategic Insights -

Excite, an internet search service, is expanding its services with the acquisition of Classifieds2000, a web site that allows users to post and browse classified advertisements. The deal, valued at $48 million in Excite stock, aims to transform Excite into a broader service with a variety of features that keep users engaged and exposed to advertising. Local services, such as classifieds and telephone directories, are big draws for users and potential advertising revenue streams. In addition to classifieds, Excite also plans to offer a range of other features and services to keep users lingering and reading its advertising.

Key Takeaways:

  • Excite is acquiring Classifieds2000, a web site that allows users to post and browse classified advertisements, for $48 million in Excite stock.
  • Classifieds2000 charges individuals to post listings, but allows businesses to display ads for free, and also sells banner advertisements.
  • George Bell, Excite's CEO, believes that local services like classifieds and telephone directories represent big draws for users and large pools of potential advertising revenue.
  • The acquisition is part of Excite's broader strategy to transform itself from a simple jumping-off point for web surfers to a more complex service with a variety of features.
  • The deal is valued at $48 million in Excite stock, which is a significant investment in the online classifieds market.
  • Excite is competing with other search services, such as Yahoo, to offer a more comprehensive range of features and services to users.
  • The acquisition is expected to give Excite access to a large pool of potential advertising revenue and a more engaged user base.

Statistics:

  • $48 million: The value of the deal in Excite stock.
  • 200 megahertz: The processor speed of the Rock City ST-100 and ST-200 computers, which are marketed as general-purpose PCs.
  • $895 and $995: The base prices (without monitor) of the Rock City ST-100 and ST-200 computers, respectively.
  • $430 million: The amount Apple paid for Jobs' Next Software, which was later chosen as the basis for Apple's next-generation operating system, Rhapsody.

Sources:

  • News.Com: A leading industry news site that published Steve Wozniak's online interview, in which he suggested that Apple overpaid for Next Software.
  • Electra.com: A women's-oriented website that offers a range of features and content, including career advice and relationships quizzes.
  • grrl.com: A women's website that refers users to other women-specific sites.
  • miningco.com: A website that offers essays on women's issues, as well as a forum for users to share their opinions.
  • webwarehouse.com: A women's shopping website that features individual designers and a wide range of products.
  • suite101.com: A women's website that offers essays and articles on a range of topics.