SANTA CLARA, Calif. -- May 28, 1999 --Yahoo! Inc. (Nasdaq:YHOO) today announced it has completed its acquisition of GeoCities,the Web's leader in personal publishing tools and communities.The acquisition accelerates Yahoo!'s global leadership positionand leverages the strengths of two of the most popular and heavily-usedservices on the Web to deliver a superior community experience.Yahoo! also announced its plans to integrate GeoCities' popularpersonal publishing tools and neighborhoods with Yahoo!'s community-buildingtools, content and services, and universal registration process.Yahoo! plans to begin rolling out these new services over thenext few weeks.
"We have moved aggressively to complete the GeoCitiestransaction, secure the company's key talent to continue to buildour community efforts, and provide our combined customers withan expanded set of services," said Jeff Mallett, presidentand chief operating officer, Yahoo!. "The combinationof GeoCities and Yahoo! will result in enhanced publishing toolsand community services for our 60 million users worldwide, andfurther strengthens Yahoo!'s global leadership position."
Enhanced, Combined Yahoo! GeoCities Communities and Tools
The combination of GeoCities' personal publishing tools andneighborhoods with Yahoo!'s community-building tools, contentand services is expected to expand the Yahoo! platform for user-generatedcontent. The company said it will continue to expand the largeand growing Yahoo! GeoCities neighborhoods. The integrationof GeoCities' publishing tools with Yahoo!'s global Web platformwill significantly expand the publishing options for users andprovide for enhanced searching and archiving of user-generatedcontent on the Web.
GeoCities' proven, scalable personal publishing tools willbe integrated into Yahoo!'s consumer publishing areas, includingauctions, chat, message boards and classifieds. In addition,the home page building service will be integrated throughoutpopular areas of the large Yahoo! Clubs community in special-interestareas such as music, health and politics. Upon launch of theintegrated community service, Yahoo! GeoCities users will haveaccess to new, easy-to-use, click-and-drag publishing tools,enabling users with no knowledge of HTML to build home pages.
The new, integrated community service will leverage Yahoo!'suniversal registration process. GeoCities' 4.2 million homesteaderswill automatically receive the benefits of Yahoo!'s personalized,registered services, including My Yahoo!, Yahoo! Mail, Yahoo!Shopping, Yahoo! Auctions, Yahoo! Chat, message boards, and more.In addition, homesteaders will be able to easily and quicklyenhance their sites by adding popular Yahoo! services such aschat, message boards and Yahoo! Search to their home pages througha simple "drag-and-drop" process. Homesteaders alsowill be able to list their home page chat rooms in the Yahoo!Chat room directory, thus exposing their site to thousands ofother online users. Following the introduction of the integratedcommunity service, Yahoo! plans to enable homesteaders to adddynamic content aggregated by Yahoo! to their home pages, includingsports scores, weather, news stories, auction information, portfolios,and more.
Key GeoCities Employees and Management Join Yahoo! to ExtendWeb's Leading Community
Approximately 100 key GeoCities employees will be integratedinto the new, combined entity and will join Yahoo! to enhanceand extend the broader Yahoo! GeoCities community services. Since 1994, GeoCities' team has defined and pioneered the Webcommunity experience. Their expertise, combined with Yahoo!'steam, positions the new entity to continue delivering the Web'sstrongest community. In addition, Tom Evans, president and CEOof GeoCities, and Steve Hansen, chief operating officer and chieffinancial officer of GeoCities have also joined Yahoo!. TomEvans has been named vice president of Industry Relations responsiblefor working with Yahoo!'s senior sales executives and key industryassociations. Steve Hansen will serve as vice president of Yahoo!GeoCities Operations and will oversee the GeoCities transition.David Bohnett, GeoCities' founder, will act as an outside communityadvisor to Yahoo!. GeoCities' employees will be integrated intoYahoo!'s headquarters in Santa Clara, Calif. and throughout itsregional sales offices in the United States.
The acquisition is being accounted for as a pooling of interests.Yahoo! will exchange approximately 21,545,000 shares of Yahoo!common stock for approximately 31,834,000 shares of GeoCitiescommon stock. Additionally, Yahoo! will convert approximately8,603,000 GeoCities stock options into approximately 5,822,000Yahoo! stock options. Yahoo! expects to record a one-time chargeof approximately $68 million in the second fiscal quarter of1999 relating to the GeoCities acquisition and relocation expenses.
Yahoo! Inc. (Nasdaq: YHOO) is a global Internet media companythat offers a branded network of comprehensive information, communicationand shopping services to 60 million users worldwide. As the firstonline navigational guide to the Web, www.yahoo.comis the leading guide in terms of traffic, advertising, householdand business user reach, and is one of the most recognized brandsassociated with the Internet. The company's global Web networkincludes 18 world properties. Yahoo! has offices in Europe, theAsia Pacific, South America, Canada and the United States, andis headquartered in Santa Clara, Calif.
This announcement contains forward-looking statements thatinvolve risks and uncertainties including the ability to successfullyintegrate the two companies, and to realize the synergies andother perceived advantages resulting from this acquisition, includingYahoo!'s ability to grow its user and advertiser bases and toachieve expectations for anticipated financial results basedon the combined entity. More information about potential factorsthat could affect Yahoo!'s ability to make this acquisition successfuland continue to grow the business are included in Yahoo!'s AnnualReport on Form 10-K for the year ended Dec. 31, 1998, as amended,and Yahoo!'s quarterly report on Form 10-Q for the three monthsended March 31, 1999 including, without limitation, under thecaptions, "Management's Discussion and Analysis of FinancialCondition and Results of Operations," "Risk Factors,""Competition," and "Proprietary Rights,"which are on file with the Securities and Exchange Commission.In addition, information about this transaction is included inthe Proxy Statement/Prospectus on Form S-4/A filed with the Securitiesand Exchange Commission (http://www.sec.gov)on April 29, 1999.