Excite takes massive non-cash write-down
By BroadCasting & Cable Staff -- Broadcasting & Cable, 1/28/2001 7:00:00 PM
Amid a dramatic slowdown in online ad spending, Excite@ Home took a $4.6 billion write-off, acknowledging that some of its acquisitions aren't going to pay off. Although the action doesn't affect operations of its high-speed cable Internet service or its cash flow, it represents more than half of the company's asset base and two-thirds the face value of the acquisitions made over the past few years, including portal Excite.
On the operating side, fourth-quarter revenues totaled $169.1 million, up 31% from the same period in 1999 but just 5.3% from the third quarter.
Also, Excite@Home is trimming 250 employees, or 8% of its work force. The cuts are largely on the Excite Web portal side, with some corporate staffers laid off as well. The company positioned the cuts as prudent trims in a softening market rather than a move of desperation. "This is different from what you're seeing in the dotcom space, where people have to lay off to stay in business," a spokesman said.
No related content found.
-
No Top Articles
Featured Company
-
Digital Rapids
Digital Rapids is the leading provider of professional hardware and software tools, technology and expertise for bringing video to wider audiences and new viewing platforms. Continuing to set new standards in quality, productivity and versatility, our solutions span the critical ..more
VIEW ALL GALLERIES
