Innovators PlanetAll and Junglee to Enrich Customers' E-Commerce
SEATTLE, Aug. 4, 1998 -- Leading online retailer Amazon.com, Inc. (NASDAQ:
AMZN), today announced the signing of definitive agreements to acquire two
innovative Internet companies to enrich its e-commerce experience for customers.
In separate transactions Amazon.com has agreed to acquire:
"PlanetAll is the most innovative use of the Internet I've seen," said
Amazon.com founder and CEO Jeff Bezos. "It's simply a breakthrough in doing
something as fundamental and important as staying in touch. The reason PlanetAll
has over 1.5 million members -- and is growing even faster than the Internet --
is simple: it creates extraordinary value for its users. I believe PlanetAll
will prove to be one of the most important online applications."
- PlanetAll, based in Cambridge, Mass., which provides a unique Web-based
address book, calendar, and reminder service at http://www.PlanetAll.com.
PlanetAll has 1.5 million members, and thousands of new members are joining
each day to use the secure, free service to organize and automatically
update information about friends, business associates, relatives, and
- Junglee Corp., based in Sunnyvale, Calif., the leading provider of
advanced Web-based virtual database (VDB) technology that can help shoppers
find millions of products on the Internet.
PlanetAll is not only the best way to keep in touch with business associates
and friends but also to get back in touch with old friends. Users have complete
control over their own contact information and decide what information they want
to share with others on a person-by-person basis. PlanetAll's service is
compatible with personal information managers (PIMs) and personal digital
assistants (PDAs), such as Microsoft Outlook and 3Com Palm Pilot.
"PlanetAll's goal is to make staying in touch with friends and business
contacts effortless," said Jim Savage, CEO of PlanetAll. "Amazon.com
allows us to take the vision of PlanetAll's founders, Warren Adams and Brian
Robertson, to an even larger audience. We're thrilled to join Amazon.com's
world-class team that cares as deeply as we do about providing meaningful
services that enrich people's lives."
"As an investor and partner, we recognized early on that this technology
has enormous promise with widespread applicability," said Bob Davis, CEO of
Lycos, which holds a stake in PlanetAll. "We look forward to continuing to
provide PlanetAll's secure and feature-rich service to Lycos users."
PlanetAll has integrated its service within the sites of a number of Internet
leaders, including Lycos and GeoCities, as well as numerous universities and
professional associations. Amazon.com intends to operate PlanetAll as a wholly
owned subsidiary located in Cambridge. Savage and the two cofounders will remain
with the company.
Junglee has developed breakthrough database technology that can dramatically
enhance customers' ability to discover and choose from among millions of
products online. To date, two of the markets Junglee has targeted have been
online retailing and online recruitment. Junglee's customers and partners in
these markets include Yahoo!, Compaq, Snap!, six of the top seven newspaper
companies, and many other new-media companies. All founders of Junglee will
remain with the company.
"Junglee has assembled an extraordinary team of people," Bezos
said. "Together we'll empower customers to find and discover the products
they want to buy."
"This is a significant opportunity for all of us at Junglee to extend
our technology well beyond our current base," said Ram Shriram, President
and COO of Junglee. "With Amazon.com, we can address the larger challenges
of e-commerce sooner -- and on a broader scale -- than we could have
Amazon.com will acquire 100 percent of the outstanding shares and assume all
outstanding options of Junglee and PlanetAll in exchange for equity having an
aggregate value of approximately $280 million. Amazon.com will issue
approximately 800,000 shares and assume all outstanding options in connection
with the acquisition of PlanetAll and anticipates accounting for this
transaction as a pooling of interests. Amazon.com will issue approximately 1.6
million shares and assume all outstanding options in connection with the
acquisition of Junglee and anticipates accounting for this transaction under the
purchase method of accounting. Each transaction is expected to close within the
quarter, subject to customary closing conditions.
Amazon.com, Inc., offers more than 3 million book, music, and other titles, plus
easy-to-use search and browse features, secure credit card payment, personalized
recommendations, and direct shipping. Amazon.com has virtually unlimited online
shelf space to offer customers a vast selection easily accessed through an
efficient search-and-retrieval interface, as well as streamlined ordering
through 1-Click (SM) technology. Amazon.com pioneered the concept of syndicated
selling on the Internet and has more than 100,000 members in its Associates
Program, including AOL.com, Yahoo!, Netscape, Excite, the AltaVista Search
Service, the @Home Network, and iVillage. About PlanetAll
PlanetAll provides a unique Web-based address book, calendar, and reminder
service at http://www.PlanetAll.com. PlanetAll has 1.5 million members, and
thousands of new members are joining each day to use the secure, free service to
organize and automatically update information about friends, business
associates, relatives, and alumni. The service was launched in November 1996,
and its investors include CMG @Ventures, Arts Alliance, Lycos, and Puma
Founded in June 1996, Junglee Corp.'s breakthrough virtual database (VDB)
technology is based on award-winning doctoral research by the company's founders
at Stanford University. Junglee's first deployment was CareerPost.com, the
Washington Post Company's online recruitment site, in January 1997. Junglee
carries more than 15 million items in the Junglee Shopping Guide and over 90,000
job listings in its Job Canopy.
This announcement contains forward-looking statements that involve risks and
uncertainties that include, among others, Amazon.com's limited operating
history, the unpredictability of its future revenues, and risks associated with
capacity constraints, management of growth, new business opportunities,
international expansion and business combinations. More information about
factors that potentially could affect Amazon.com's financial results is included
in the company's Annual Report on Form 10-K for the year ended December 31,
1997, and quarterly report on Form 10-Q for the quarter ended March 31, 1998,
both filed with the Securities and Exchange Commission.
Amazon.com, Earth's Biggest Bookstore, and 1-Click are either registered
trademarks or trademarks of Amazon.com, Inc. All other names mentioned herein
may be trademarks of their respective owners.