Yahoo! To Acquire Four11 Corporation
Yahoo! To Acquire Four11 Corporation
Incorporates Leading E-mail and Communication Services
SANTA CLARA, Calif. -- Oct. 8, 1997 --Yahoo! Inc. today announced it has signed a definitive agreement to acquire Four11 Corporation, a privately held, online communications and directory company. Four11 is the creator of several directory services, including e-mail, phone and address listings, along with Internet-based communications services such as net-phone software tools and RocketMail, a free Web-based service. In a separate announcement today, Yahoo! introduced Yahoo! Mail, a free, Web-based e-mail service based on RocketMail technology.
Under the terms of the acquisition agreement, Yahoo! will issue 1,654,099 shares of Yahoo! common stock for all outstanding Four11 shares, options and warrants. The transaction will be accounted for as a pooling of interests. Yahoo! expects to record a one-time charge of approximately $4 million in the fourth fiscal quarter of 1997 relating to expenses incurred in connection with the transaction. The acquisition, which is subject to a number of conditions, is expected to be completed in the fourth quarter.
Four11 was founded in 1994 by Michael Santullo and Larry Drebes, who created directories for people to find and communicate with other people on the Internet. Four11 was among the first companies to establish an effective "white pages" directory, and for more than two years the company has been a leader in providing directory services to the growing global Internet community.
Communications Services Core to Yahoo!
"With the acquisition of Four11's core technologies and resources, we are able to expand our communications offerings and provide a broader range of value-added services for current and new Internet users. The integration of these services reinforces Yahoo!'s leadership position on the Web," said Tim Koogle, president and CEO of Yahoo! Inc. "The Internet is profoundly changing the way people communicate around the world, and Yahoo! continues to focus on communications services as a key component of our business strategy."
Through the acquisition, Yahoo! will leverage Four11's offerings to complement and grow Yahoo!'s already robust communications services, which currently include chat, message boards, classifieds, yellow pages and white pages. Four11's products include RocketMail, recently ranked the best free e-mail service by C|Net, the Four11
"Four11 brings users the Internet's best people-to-people communication services," said Michael Santullo, president and co-founder of Four11 Corporation. "By joining Yahoo!, one of the world's leading Internet companies, we will expand these services and reach a broader audience worldwide."
Yahoo! Inc. (NASDAQ:YHOO) is a global Internet media company that offers a network of branded Web programming that serves millions of users daily. As the first online navigational guide to the Web, www.yahoo.com is the single largest guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. Yahoo! Inc. provides targeted Internet resources and communications services for a broad range of audiences, based on demographic, key-subject and geographic interests. Yahoo! is headquartered in Santa Clara, Calif.
This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the company's ability to successfully complete the acquisition of Four11, to expand its communications offerings and to effectively integrate Four11's operations and services into those of the company. More information about potential factors which could affect the company's financial results is included in the company's annual report on Form 10-K for the year ended Dec. 31, 1996, the company's quarterly report on Form 10-Q for the period ended June 30, 1997, and the company's registration statement filed on Form S-3 dated Aug. 4, 1997, which are on file with the Securities and Exchange Commission (http://sec.yahoo.com/edgar/latest/yhoo.html).