Saturday, January 24, 2004

Ariba Buys FreeMarkets,Combines B2B Survivors

WSJ.com - Ariba Buys FreeMarkets,Combines B2B Survivors: "In a deal that combines two humbled survivors of the Internet craze, Ariba Inc. (ARBA) said Friday it plans to buy FreeMarkets Inc. (FMKT) for cash and stock initially worth nearly $500 million.
The companies, which once boasted multibillion-dollar valuations, fell out of favor as they struggled with a sharp drop in demand and multiple restructurings. Their stocks - which went public in 1999, soared then crashed - are 97% below the highs reached in 2000.
While Ariba has stabilized its business and recently turned a quarterly profit, FreeMarkets has continued to struggle with net losses and fired workers as recently as October. Ariba currently sports a market capitalization of about $1 billion."
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