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  • p_blasato p_blasato Dec 21, 2000 11:36 PM Flag

    News: Yahoo!/ Spinway/BlueLight.com

    http://quote.bloomberg.com/fgcgi.cgi?s=AOkKJ5xZAWWFob28g&T=marketsquote99_news.h
    t


    Yahoo Earnings May Be Reduced by Spinway's

    Demise, Analyst Says
    By Adam Steinhauer

    Santa
    Clara, California, Dec. 21 (Bloomberg) -- Yahoo! Inc.,
    the biggest
    Internet search service, might have
    to pay to provide Internet access for
    hundreds
    of thousands of people now that Spinway Inc. is out
    of business, an
    analyst said.

    Spinway
    had provided the infrastructure for free Internet
    service that was
    offered by several major retailers
    who had advertised on Yahoo, Lehman
    Brothers
    analyst Holly Becker wrote in a report to clients. Those
    companies,
    which include Costco Wholesale Corp. and Barnes &
    Noble Inc., had provided
    the Internet service as
    part of the online marketing and advertising
    campaigns
    they had developed in partnership with Yahoo,
    Becker said.

    Spinway ceased operations three
    weeks ago, Becker wrote. Now, Yahoo may
    have to pay
    for the Internet services that some of its
    advertising clients had
    offered in partnerships with
    Yahoo.

    ``The critical issue now is what happens
    to the hundreds of thousands of
    registered users
    who have signed up for this service,'' Becker wrote
    in a report
    to clients. ``At least in the near
    term, we believe Yahoo may have to foot the
    bill to
    keep these customers connected, which could put
    pressure on
    earnings.''

    Bluelight.com, the
    Web shopping site started by Kmart Corp., said
    three
    weeks ago that it would buy some of Spinway's
    assets. The purchase will let
    Bluelight.com continue
    to provide service for its own 5 million
    registered
    Internet users, Becker wrote.

    Yahoo
    shares fell $2.31 to $25.63 today in Nasdaq Stock Market
    trading.
    Representatives of the Santa Clara, California-
    based company couldn't be
    reached to comment.

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