Zapata said it would make a comeback on the Net, andeveryones vorite marine protein and food packaging company appears to beramping up its efforts once again.Zapata, whichattempted to buyExcite and signedletters ofintent to acquire 31 Internet properties last year and then backed outin October, is now aggressivelyseeking new deals.
Along with a message on its
Zap- Web site, the company took out an adin The Wall Street Journal recently looking for Web sites to acquireto be part of its upcoming network.
Your Web site may be worth millions! says a message posted to Zap-.
We will soon be launching the all-new Zap- Network, the messagecontinues. Your Web site may be worth millions if it reaches moreEzine Publishing than25,000 unique users per month.
Zapata declined comment.
Along withWord and
Charged, two of the Nets early e-zinesthat Zaprescued after they wereshuttered in March 1998 byparentIcon CMT Corporation, the Zap- site features links to
Phantom Menace News, asite that aggregates articles about the upcoming Star Wars prequel.
But the companys on again-off again Internet plans are meeting withskepticism.
Ill believe it when I see it, Lisa Allen, an analyst with
Forrester Research, said about theZap- portal. Havent we been down this road before?
Along with the firms damaged credibility from backing out of the earlierdeals, Allen questioned Zapatas ability to enter the online space in aportal capacity.
What kind of companies are going to answer these ads? Allen said. Maybethere are some diamonds in the rough out there,nike outlet store. but why should I think acompany like this would know a good site from a bad one?
Patrick Keane, an analyst withJupiterCommunications,Nike soccer cleats questioned the value of what he called ZapsFrankenstein approach to building its network.
I dont see how their strategy of investing in all these middle-tier orbottom-tier Web sites is going to establish them as a portal, he said.
Both analysts also pointed to Zaps late entry into the space.
If they think being a portal is the road to riches, they should lookaround at the very crowded portal space and think again, Allen said.
They saw the tremendous value enjoyed by the portals, and thats clearlywhy theyre entering this business, Keane said, adding that the portalbattle is essentially over.
Still, editors at Word and Charged said they are happy working under theZapata umbrella. The company bought the sites from Icon CMT for $2 millionin April 1998.
Were doing really well, said Alice Bradley, editor in chief of extremesports site Charged. Since Zapata took over, weve had the ability to hiremore people, which we needed to do very badly. And weve been given so muchfreedom with our creative decisions.
Marisa Bowe, editor in chief of culture zine Word, added that Zapatadoesnt pretend to be experts in all the businesses theyre in–theyrejust investors.
Bowe said Word recently reached a deal withCrown Books to publish a bookof columns from the zine that will bring the site a sum in the high fivefigures.
Both editors conceded that the sites traffic figures were relatively lowand that they are not bringing in revenue. Bradley pointed out that Chargedonly recently hired an ad sales person. Both editors declined to disclosespecific traffic or financial data.
But Zapatas ever-changing Net strategy has not been without externalwrangling. Just weeks after Zapata announced it was backing out of its Netplans in October 1998, the company was slapped with a
shareholder suit charging thatZapata executives made lse and misleading statements about implementingthe Internet strategy.
A class-action lawsuit also was filed on behalf of all purchasers of the commonstock of Zapata from July 6, 1998, through October 15 Nike mercurial vapor superfly, 1998.
Moreover, although announcements about Internet deals sent Zapatas stocksoaring last year, Wall Street may be more wary now.
Show me something, analyst Allen said. Theyre looking for the money?Im looking for signs that theyre serious. Theres no there there.
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