Feeds

Excite@Home raises $35m in greetings goodbye

Not a bad return for $750m investment

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Troubled dotcom Excite@Home has flogged its online greetings card business bluemountain.com to the American Greetings Corporation for $35 million in cash.

The deal will save ExciteAtHome a fair wedge in overheads, and it will also deliver much-needed liquidity at a time when hard cash is in short supply.

Excite@Home said the sale "maps to our action plan to focus on broadband and to bolster our cash position and lower operating costs."

For the American Greetings Corporation, the deal has added yet another dotcom operation to its ever-growing portfolio - it has already snapped up Egreetings.com and BeatGreets.com.

However, to put Excite@Home's sale into perspective, you need only look back at the recent past to see the scale of its problem. In October 1999 Excite@Home announced its intention to buy Bluemountain.com for a whopping $780 million in cash and stock.

In those far-off crazy days Excite@Home blew £350 million in cash on the operation. Today, it's only managed to claw back a tenth of that investment.

And there was even a caveat that if BlueMountain.com hit certain performance-related targets Excite@Home would fork out an additional $270 million in shares. Madness.

Last week, CFO Mark McEachen resigned from the company to pursue other interests.

And last month the company warned it didn't have enough cash to last the end of the year. ®

Related Stories

Excite@tHome CFO resigns
Excite@Home ditches Ernst & Young
Excite@Home faces financial ruin

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Simplify SSL certificate management across the enterprise
Simple steps to take control of SSL across the enterprise, and recommendations for a management platform for full visibility and single-point of control for these Certificates.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.