TAIPEI, Taiwan (Nov. 9, 2000) – Yahoo! Inc. (Nasdaq: YHOO) today announced it has signed a definitive agreement to acquire Kimo (www.kimo.com.tw), the No.1 ranked Web site in Taiwan. Kimo provides online consumers with comprehensive search capabilities, localized content, and community and personalized services, including e-mail, clubs and chat. The agreement combines the strengths of Yahoo!(R) Taiwan (www.yahoo.com.tw), one of Yahoo!'s 24 global properties, and Kimo, by leveraging Yahoo!'s global network and resources and Kimo's local industry expertise to deliver an unparalleled Internet experience to local consumers.
"Kimo's seasoned management team has done a fantastic job of building a solid and successful operation that provides superior local content and services to the online audience in Taiwan," said Heather Killen, Yahoo!'s senior vice president of International Operations. "Yahoo! and Kimo share a strong consumer focus, and the combination of the companies' global and local strengths will help deliver a richer and more comprehensive Web experience to both consumers and clients. We look forward to bringing together the two companies to deliver the best of the Web."
"By teaming up with one of the leading global Internet companies, Kimo is able to leverage Yahoo!'s global network and vast resources to enhance its presence and impact a larger audience locally as well as worldwide," said David Lu, chief executive officer of Kimo. "We are pleased to combine our strengths to meet the demands of the marketplace – delivering relevant content and services to consumers, as well as new tools and programs to advertisers and merchants."
Today's announcement supports Yahoo!'s commitment and strategy to further develop and deepen its properties across Asia. Currently, Taiwan is Asia's fourth largest Internet market with a predicted annual growth rate of approximately 30-35 percent (IDC, June 2000). The companies plan to bring together their local and global brand equity, resources and industry expertise to grow their leadership position in the Taiwan market and leverage their experience across the Greater China region. Consumers will benefit from the expanded programming and services of the combined company. In addition, advertisers and merchants will now have additional ways to reach larger, targeted audiences through the companies' combined reach and services, plus improved audience tracking and ad serving technology.
Under the terms of the agreement, Yahoo! will issue 2.25 million shares for all outstanding Kimo shares, options and warrants. In addition, the agreement provides for an additional cash consideration payable to Kimo's shareholders in the event that specific performance criteria are met by the end of fiscal year 2001. The acquisition, which is subject to certain conditions, including the approval of certain Taiwanese government regulatory authorities, will be accounted for as a purchase transaction and is expected to be completed late in the fourth quarter of 2000.
Kimo (www.kimo.com.tw) is the most frequently visited Web site in Taiwan, according to an October 2000 study released by AC Nielsen. For the third quarter of 2000, the company reported an average of 25 million page views per day and four million registered members. Kimo provides comprehensive search capabilities, localized content, community and personalized services across one of the most advanced technology platforms in the Taiwan Internet industry, including a sophisticated Chinese language search engine, an advanced email system and a real-time stock quote delivery system. The company has recently launched, on a trial basis, e-commerce-enabling services whereby clients use the Kimo Web site to attract and initiate transactions with Kimo consumers.
About Yahoo!
Yahoo! Inc. (Nasdaq:YHOO) is a global Internet communications, commerce and media company that offers a comprehensive branded network of services to more than 185 million individuals each month worldwide. As the first online navigational guide to the Web, www.yahoo.com is the leading guide in terms of traffic, advertising, household and business user reach, and is one of the most recognized brands associated with the Internet. The company also provides online business services designed to enhance the Web presence of Yahoo!'s clients, including audio and video streaming, store hosting and management, and Web site tools and services. The company's global Web network includes 24 World properties. Yahoo! has offices in Europe, the Asia Pacific, Latin America, Canada and the United States, and is headquartered in Santa Clara, Calif.
This announcement contains forward-looking statements that involve risks and uncertainties including, among others, the ability to successfully integrate the two companies, and to realize the synergies and other perceived advantages resulting from this acquisition, including Yahoo!'s ability to grow its user and advertiser bases and to achieve expectations for anticipated financial results based on the combined entity. Actual results may differ materially from the results predicted and any reported or announced information should not be considered as an indication of future performance. More information about potential factors that could affect the company's business and financial results is included in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1999, the company's current report on Form 8-K/A filed on Sept. 22, 2000, and Yahoo!'s quarterly report on Form 10-Q for the three-month and six-month periods ended June 30, 2000, including (without limitation) under the captions, "Management's Discussion and Analysis of Financial Condition and Results of Operations," "Competition," "Proprietary Rights," and "Risk Factors," which are on file with the Securities and Exchange Commission (http://www.sec.gov). Additional information will also be set forth in those sections in Yahoo!'s quarterly report on Form 10-Q for the three-month and nine-month periods ended Sept. 30, 2000, which will be filed with the Securities and Exchange Commission in the near future.
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