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The Kelsey Report® Advisory

Scoot Moves Its Own Goal Post
Charles Laughlin , 6/15/2000

Issue: Directory Service Shaves Two Years Off Pan-Europe Timetable

News: As expected, Scoot.com has acquired Loot.com, a U.K.-based online classified and auction site. The transaction involves roughly 178 pounds ($269 million) in cash, to be financed by Scoot's benefactor, Vivendi, which is issuing 70 million new shares of Scoot stock and exercising existing warrants. In addition, Scoot will assume two million pounds ($3 million) in Loot debt and will issue five million Scoot shares to Loot's supplier creditors.

Scoot claims that sales have accelerated since the launch of its Version 2 service. Nonetheless, its latest financial statements reflect a decline in overall revenues, which management attributes to a change in its business model from fixed to "value-based" pricing. Net losses have stabilized, but persist in spite of the fact that usage of Scoot's Internet and voice platforms are on the rise.

Scoot also announced plans to move up its timetable for establishing a "pan-European infomediary network" by two years to 2003, thanks to its new pricing model and new acquisition.

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