EarthLink To Acquire PeoplePC

Share this article:
Internet service provider EarthLink Inc. said yesterday it has agreed to buy PeoplePC Inc. for 1.71 cents per outstanding share or $10 million.


According to EarthLink, Atlanta, pre-closing adjustments to the purchase price could raise the price to 24.5 cents per share or $14.3 million.


The deal is expected to close in the third quarter.


EarthLink will assume approximately $35 million in deferred service liabilities to PeoplePC subscribers who purchased pre-paid Internet access services along with a personal computer as part of a bundled package.


The deal is expected to bring 60,000 paying monthly subscribers to EarthLink and about 500,000 pre-paid monthly subscribers.


PeoplePC, San Francisco, in May reported net revenue of $48 million for the first quarter of 2002 compared to $37.3 million in the first quarter of 2001.


The company reported a net loss of $8.8 million or 3 cents per share in the first quarter of 2002, compared to a net loss of $36.2 million or 33 cents per share, in the first quarter of 2001.


As of March 31, PeoplePC said the company had cash and restricted cash of approximately $13.7 million and $5.7 million in accounts receivable.


EarthLink says it has 4.9 million subscribers. It also claims on its home page that it is actively looking to acquire ISPs and offers a link to a form for would-be suitors.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Customer Identity in the Digital Age

Customer Identity in the Digital Age

Industry experts explore the value in a person's cyber identity for marketers.

Epsilon Rebrands as End-to-End Marketing Solution

Epsilon Rebrands as End-to-End Marketing Solution

The goal is to flame the perception that technology and creativity live under one roof at the company, says President Andy Frawley.

Mobile Spend Vaults 76 Percent in First Half, IAB Reports

Mobile Spend Vaults 76 Percent in First Half, ...

Overall Internet ad revenues escalate by 15% to $23 billion, also fueled by increased activity in social media and video.