Exhibit 99.1
FOR IMMEDIATE RELEASE
YAHOO! ACQUIRES ENCOMPASS, INC.
NEW PC PURCHASERS TO BENEFIT FROM AN INTEGRATED, ONE-BUTTON INTERNET EXPERIENCE
SANTA CLARA, Calif. - MAY 27, 1999 - Yahoo! Inc. (Nasdaq: YHOO) today
announced it has acquired Encompass, Inc., a market leader of software designed
to give consumers easy and compelling access to the Web. Through relationships
with Internet service providers (ISPs) and Yahoo!, Encompass' custom-designed
software enables PC manufacturers to give Internet users a fully integrated,
all-in-one Internet solution. This acquisition supports Yahoo!'s strategy to
deliver consumers the best experience available on the Web and expands the
business services the company offers its strategic partners. Encompass
currently serves the world's leading PC and PC peripheral manufacturers and
ISPs, including Acer, CTX, Dell, Diamond Multimedia, Hewlett-Packard, Micron,
Toshiba, Sony, AT&T, Earthlink and GTE. The acquisition, which is being
accounted for as a pooling of interests, is valued at approximately $130
million.
"Encompass integrates several traditionally disparate elements and enables
us to give PC providers one comprehensive solution that results in easier access
to the best content and services available on the Web and a better consumer
Internet experience, which is the foundation of Yahoo!'s business philosophy,"
said Jeff Mallett, president and chief operating officer, Yahoo!. "This
acquisition further expands the business services we offer our strategic
partners, and is consistent with our PC, device and ISP independent business
model."
Either integrated into the start experience of a new PC, or bundled on CDs
shipped by device and software manufacturers, Encompass delivers instant access
to the Internet. Using a simple, integrated registration process, Encompass
provides consumers with ISP connectivity and a personalized My Yahoo! Internet
experience. Consumers get connected to the Internet in less than five minutes
through an experience that features customized content, and a step-by-step
Internet tutorial. During the same process, Encompass provides the hardware,
software, ISP or affinity partner with product registration services, allowing
them to capture detailed demographic information about their customers, and the
ability to generate revenue from affinity products and services. Encompass'
end-to-end solution also provides companies with an array of innovative
communications platforms allowing them to leverage the Internet to communicate
with their customers in a persistent and effective way. Consumers benefit from
Encompass' custom browser that provides easy navigation, commerce and
communications services.
"We have teamed with Yahoo! for more than a year on an array of
distribution agreements," said John Willcutts, president and CEO, Encompass.
"This merger deepens our combined commitment to deliver to consumers the easiest
and most compelling experience on the Web, while providing added value to
hardware and device manufacturers, ISPs, and advertisers and merchants.
Combined, Yahoo! and Encompass' services are distributed in partnership with
eight of the world's 10 largest PC providers."
The Encompass acquisition complements Yahoo!'s business model and Fusion
Marketing Online-TM- (FMO) program in which it designs integrated marketing
programs for merchants and advertising clients worldwide. FMO leverages
Yahoo!'s traffic and database of more than 47 million unique user registrations
to provide targeted, customized and measurable marketing solutions for clients.
Encompass' registered users, who have all recently purchased a PC and are eager
to explore a wide variety of content and services on the Web, are a highly
desirable demographic for Yahoo!'s advertising and merchant clients.
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YAHOO! ACQUIRES ENCOMPASS, INC./PAGE 2
ABOUT YAHOO!
Yahoo! Inc. (Nasdaq: YHOO) is a global Internet media company that offers a
branded network of comprehensive information, communication and shopping
services to 60 million users 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's global Web network includes 18 world
properties. Yahoo! has offices in Europe, the Asia Pacific, South 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 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. More information about potential factors that
could affect Yahoo!'s ability to make this acquisition successful and continue
to grow the business are included in Yahoo!'s Annual Report on Form 10-K/A for
the year ended Dec. 31, 1998 and Yahoo!'s quarterly report on Form 10-Q for the
three-months ended March 31, 1999 including, without limitation, under the
captions, "Management's Discussion and Analysis of Financial Condition and
Results of Operations," "Risk Factors," "Competition," and "Proprietary Rights,"
which are on file with the Securities and Exchange Commission. In addition,
information about this transaction will be included in a Form S-3 to be filed
with the Securities and Exchange Commission (http://www.sec.gov).
# # #
Yahoo! and the Yahoo! logo are registered trademarks of Yahoo! Inc.
All other names are trademarks and/or registered trademarks of
their respective owners.
PRESS CONTACTS:
Blaise Simpson, NRW PR, (650) 827-7065, blaise@nrwpr.com
Diane Hunt, Yahoo! Inc., (408) 731-3441, diane@yahoo-inc.com