from Losses Won't Deter European Expansion
News: In the
face of growing losses, European online directory Scoot.com has retained
Merrill Lynch to help it conduct a "strategic review." Its options presumably
would include, but not be limited to, a sale or merger. Recently, Scoot
has been a rumored takeover target; the company had to deny it was in
talks with the Meridian group of investors led by Hong Kong entrepreneur
Richard Li, head of Pacific Century CyberWorks.
Last week, Scoot.com
announced earnings for the five quarters spanning September 1999 through
December 2000 (the odd reporting period reflects a change in the company's
fiscal year). The company posted an EBITDA loss of $66.6 million on revenues
of $39 million, including its share of a joint venture in Belgium with
Vivendi. For the full year 1999, which ended September 30, Scoot lost
about $28.7 million on revenues of $27.3 million.