Multiples paid for digital-media firms surge from year ago, M&A data show

Article Abstract:

Corporations have spent $4.6 billion on around 112 digital-media acquisitions in the 1st half 1998, according to a report by investment bank Broadview International. The mergers-and-acquisitions data, which showed that paying valuations averaged 16 times annual revenue, illustrates the surging valuation of Internet-related businesses. By comparison, 106 announced purchases of Internet companies totaled $2.2 billion in the 1st half 1997, or 2.7 times annual value. Valuations may continue to climb in the 2nd half 1998, according to Broadview International, which specializes in technology companies. An example is Yahoo's Jun 1998 acquisition of Viaweb, which ballooned from around $50 million to almost $100 million after Yahoo's stock price had jumped.

Internet, Reports, Forecasts and trends, Acquisitions and mergers, Market trend/market analysis, Market share

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Search for Pez Launched Web's Newest Mogul

Article Abstract:

Ebay.com, the on-line auction service went public recently on the NASDAQ. Its stock openned at $15 a share, and closed at $47.1875, resulting in a stock market value of $1.8 billion. Ebay hosts auctions for many varied classes of items from computers to antique cars. Sales listings cost betwen $.25 to $2, with a 1.25 to 5% sales commission. Between eBay.com's founding in 1995 to the present, the company has offered $340 million in merchandise. Benchmark Capital (Menlo Park, CA) provided an initial $5 million to help start the company in exchange for 22% of the stock, now valued at $400 million. Benchmark also found qualified personnal for eBay, who helped develope and launch the company.

Comment:

Discusses the formation, and structure of eBay.com, founded with the help of Benchmark Capitol

United States, Product information, Company Planning/Goals, Benchmark Capital Partners, Article

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Search for Pez launched Web's newest mogul

Article Abstract:

eBay Inc, an online auction company, went public at $18 a share on Sep 24, 1998, and the stock quickly tripled in value, closing at $47.1825 on Nasdaq. By the end of the day, the company was valued at $1.8 billion, showing how much excitement an Internet stock can generate, even in a nervous market. eBay derives from a chance 1995 conversation about how to find people wanting to sell Pez candy dispensers. Pierre Omidyar, the company's chairman, started a small Web-based auction service so that buyers and sellers could find one another. Omidyar now owns 12.9 million eBay shares worth $611 million, and eBay's CEO, Margaret Whitman, holds options valued at $114 million.

Miscellaneous retail stores, not elsewhere classified, Art Dealers, Auctioneers, Art Dealers, Telecommunications services industry, Telecommunications industry, Online services, Biography, Securities, Initial public offerings, Company public offering, Auction firms, Omidyar, Pierre

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