1. Surviving the Portal Wars: Go2Net.com
Jackie Dutcher
Jodie Raney
PJ Santos
Brian Schwarz

2. Agenda The Portal Market Company Overview Business Strategy
Go2Net Network
Portal Services
Search Engines
Small Business
E-commerce
Partnerships and Acquisitions
Competition
Strengths and Weaknesses
Recommendations

3. The Portal Market
Portals are Internet media companies that offer comprehensive information, communications and e-commerce services to millions of users.

4. Company Overview Founded in 1996, IPO in 1997
Strategic Investment by Paul Allen
Revenue = 70% Advertising
30% E-commerce
Go2Net Network > 10 major internet sites

5. Business Strategy Leverage the diversified GO2Net Network for profits
Russell C. Horowitz, Go2Net's Chairman and CEO
"The strong leverage inherent in Go2Net's business model will continue to differentiate us as one of the Internet sector's few operationally profitable companies. Going forward, we will continue to be aggressive in our strategic activity, focusing on opportunities that help us maintain and enhance our leadership position in the Internet's fastest growing sectors.”
Profits, DCF models and P/E’s
Thinking “old economy” when it comes to partnerships, acquisitions and growth
What a concept...

6. Portal Services Value added eyeball generators
Web’s premier financial discussion & information site
3yr agreement with National Discount Brokers
Purchased $1 million of NDB stock - integrated sites
Real time quotes
Wireless version for palm VII
Free game site, no plug-ins
Linked to Go2Net Network

7. Search Engines Different names for the same function
Best known, straight forward
Use of a metaphor to describe the function of the site
100 lists of everything from music to travel

8. Small Business Internet’s largest community of small businesses
800,000 members
Pay monthly “storefront” fee
Web hosting, tech support 24/7
Site design, market research

9. Small Business - links/partnerships
Leading payment authorization service
70,400 merchants use for processing e-commerce transactions. Added 12,000 last quarter
Businesses can authorize, process and manage credit card and electronic check transactions in real time from any computer
Planet Payment alliance
Prime.com
Partnership with publisher of QuickSite web design software

10. E-commerce Typical portal sites for e-commerce
The ebay site for Go2Net
The Amazon.com of the Go2Net network

11. Partnerships and Acquisitions
Growth that adds value to their shareholders
$10m investment - “Great answers from great people”
Pays Go2Net to be prominently featured on Network
Set-top TV boxes delivering broadband access to the internet with Go2Net as the portal of choice
Others
Goto.com, Looksmart, Realnames, Find What

12. Competition Eyeballs 12M 35M 48M Sales $19M $69M $232M
Profit $8.3M ($31M) $45M
Market Cap $1.8B $4.2B $67.6B
Cash $237M $627M $992M

13. Competition - Traffic Data

14. Strengths and Weaknesses
$262M in CA vs. $25M in CL
Paul Allen Connections
Diversification
One of the few operationally profitable companies on the internet
Former Microsoft VP Rick Thompson named CFO
12yrs experience in product creation
80% operating margins
Market capitalization vs. competition
Marketing/branding/identity of web sites
Network needs cohesion
Longevity of income “extortion” from VC rich start-ups looking for exposure

15. Conclusion
Provides all necessary services required of an Internet portal site.
Accommodates all venues of e-commerce - B2B, B2C and C2C
Strategically positioned to be the portal of choice for future broadband TV internet access

16. Go2Net Portal
Finance
Games
E-commerce
Search