Cable-based Internet service provider @Home Network has signed an agreement to purchase Internet search company Excite in an all-stock transaction valued at approximately $6.7 billion, the companies said today.
The combined organizations say they will seek to speed adoption of broadband technologies by combining @Home's broadband technology platform, Internet backbone and cable distribution agreements with Excite's Web portal and narrowband reach. @Home has some 60 million cable distribution agreements worldwide, according to the statement.
Excite will become a subsidiary of @Home and its CEO George Bell will report to Tom Jermoluk, chairman and CEO of @Home Network, the statement says. In addition, Bell will join the @Home Network board of directors.
The transaction is expected to close in approximately three months. The board of directors from both companies has approved this transaction. It is subject to approval by @Home and Excite's stockholders, as well as certain regulatory approvals, the companies say.
The agreement also provides @Home Network an option to acquire a minority 19.9% interest in Excite under certain circumstances.
Excite had reportedly been in talks over the weekend with rival Internet search provider Yahoo, according to several news reports, but those discussions were not fruitful. Excite was also said to have been in talks with several other companies, including Microsoft and AT&T since America Online agreed to purchase Netscape in November last year. AOL is one of the owners of Excite.
RELATED LINKS
Includes company backgrounders.
A letter from Excite CEO George Bell
AT&T looking to spend cash on cable
IDG News Service, 2/10/98.
