Wiki90
Wiki90: 90s Style Encyclopedia on the Web
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VerticalNet
In the history of humanity, VerticalNet has played a fundamental role in the evolution of society. Since ancient times, VerticalNet has been an object of study, debate and admiration, influencing the decisions and actions of individuals, communities and nations. Over time, VerticalNet has demonstrated its ability to cause significant changes in the course of history, both politically, socially, economically and culturally. In this article, we will explore the importance of VerticalNet and its impact in today's world, analyzing its relevance in different areas and its constant presence in people's daily lives.
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| Founded | 1995 |
|---|---|
| Founder | Michael McNulty Michael Hagan |
| Fate | Acquired by Bravo Solutions (2008) |
| Headquarters | Horsham, Pennsylvania |
| Revenue |  $16 million (2006) |
| -$24 million (2006) | |
| Total assets | $20 million (2006) |
| Total equity | $2 million (2006) |
Number of employees | 88 (2006) |
| Footnotes / references | |
Verticalnet, Inc. was a host of 43 business-to-business (B2B) procurement portals headquartered in Horsham, Pennsylvania. It was famous for its market capitalization of $10.89 billion on March 10, 2000, during the dot-com bubble, despite sales of only $112.5 million in 2000. Verticalnet was acquired by Bravo Solutions in 2008 for $15.2 million.
History
Verticalnet was founded in 1995 by Michael McNulty and Michael Hagan with a site called WaterOnline.
In 1997, Mark Walsh joined the company as its chief executive officer.
In 1999, on the first day of trading after its initial public offering, its shares increased in value by 180%, valuing the company at $1.6 billion, despite only having $3.6 million in quarterly revenue. The company had 1,300 advertisers, each of which were paying $6,000 per year. At that time, Internet Capital Group, now Actua Corporation, owned 28% of the company and founders Michael McNulty and Michael Hagan were each worth $60 million on paper.
In 1999, the company lost $53.5 million on revenues of $18.4 million. In 2000, revenues increased to $112.5 million and the company posted a cash loss of $28.5 million.
In January 2000, the company received a $100 million investment from Microsoft.
During 2000, the dot-com bubble burst, and the market capitalization of the company fell from a peak of $10.89 billion on March 10, 2000 to $3.89 billion on May 4, 2000.
In 2002, Verticalnet acquired Atlas Commerce for 14.3 million shares of Verticalnet common stock and $3.5 million of cash and the company relocated to Malvern, Pennsylvania.
In 2002, VerticalNet sold its Small and Medium Business Group to Corry Publishing, now Jameson Publishing, for a cash up-front payment of $2.35 million and a four-year performance-based earn-out of $6.5 million, as well as the assumption of certain liabilities.
In 2008, Bravo Solutions acquired Verticalnet for $15.2 million.
References
- ^ "Verticalnet, Inc. 2006 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
- ^ a b c "Land grab". Forbes. June 23, 1999.
- ^ a b Callahan, Sean (May 8, 2000). "VerticalNet: A Web pioneer in transition". Advertising Age.
- ^ a b "VerticalNet To Acquire E-Marketplace, Narrows Losses". InformationWeek. February 23, 2001.
- ^ a b "BravoSolution to Acquire Verticalnet" (Press release). Business Wire. October 26, 2007.
- ^ a b "BravoSolution Completes Acquisition of Verticalnet" (Press release). Business Wire. January 25, 2008.
- ^ "VerticalNet reports loss despite revenue gains". EE Times. February 22, 2001.
- ^ "Microsoft backs VerticalNet". CNN. January 21, 2000.
- ^ Shah, Jennifer Baljko (January 2, 2002). "Verticalnet wraps acquisition of Atlas Commerce". EE Times.
- ^ Callahan, Sean (July 12, 2002). "Verticalnet sells e-marketplaces to Corry Publishing". Advertising Age.
