Sign in Subscribe
Information technology services industry

LibertyOne Shares Soar 30% Following Microsoft E-Commerce Deal

Strategic Insights

— 1 min read

LibertyOne, an Internet media company, saw its shares skyrocket over 30% after announcing an e-commerce deal with Microsoft. The Australian company's subsidiary, ZIVO, will work with Microsoft to accelerate the adoption of online business methods, including e-commerce solutions, web site setup, and online promotions. The partnership is seen as a major coup for LibertyOne, with analysts predicting a significant increase in the company's earnings potential.

Key Takeaways:

  • LibertyOne's shares closed at $A1.20, a 29-cent increase, with 11.2 million shares traded on the Australian Stock Exchange.
  • The deal between ZIVO and Microsoft is part of the latter's strategy to accelerate the use of online business methods.
  • ZIVO is one of four e-commerce solutions companies participating in Microsoft's initiative.
  • The partnership is expected to address a wide range of business needs, including setting up a web site, dialogue with other businesses, and online promotions.
  • LibertyOne acquired ZIVO in March 1999, and the deal consolidates the e-commerce solutions company's relationship with Microsoft, which began 18 months ago.
  • ZIVO is Asia Pacific's foremost Internet solutions company, aiming to expand aggressively in the region through providing web-based solutions and Internet brand management.
  • Analyst Shane Hodson predicts that the partnership will give the industry a sign of LibertyOne's credibility and that of ZIVO as an expert in e-commerce consulting and practice.
  • The deal is expected to attract e-commerce business and result in significant earnings for LibertyOne, with revenues estimated at around $5 million to $6 million in 1999.

Statistics:

  • 11.2 million shares traded on the Australian Stock Exchange.
  • 29-cent increase in LibertyOne shares, closing at $A1.20.
  • 30% increase in LibertyOne share price following the announcement of the e-commerce deal.
  • Estimated revenues of ZIVO in 1999: $5 million to $6 million.
  • 18 months duration of ZIVO's relationship with Microsoft.

Sources:

  • "Shares in Internet media company LibertyOne soar as Microsoft e-commerce deal is announced."
  • Asia Pulse (C) 1999 Asia Pulse Pte Ltd
  • COMTEX (http://www.comtexnews.com)

Read more