theglobe.com's Second Annual Shareholders Meeting
NEW YORK, June 6 /PRNewswire/ --
In theglobe.com's (Nasdaq: TGLO) second annual shareholders meeting, held June 6th,
at 8:30am in New York, Company executives described detailed steps on ways theglobe.com
is demonstrating its commitment to achieving profitability. Management outlined
the following initiatives undertaken both in 1999 and 2000 which are lowering costs
and increasing revenues as the Company moves toward profitability.
Profitability initiatives undertaken in 1999 and 2000:
-- Distributing customized community solutions to leading Web properties, allowing theglobe.com to leverage fixed cost infrastructure over a much wider revenue base. Additionally, the Company is able to access much more targeted and valuable audiences with significantly reduced marketing and customer acquisition costs. Leading partners include CBS Sportsline.com, Time Warner's Road Runner, RollingStone.com, Deja.com, and Alloy.com.
-- Eliminating inefficient business areas by closing our shop.theglobe.com Seattle office, refocusing e-commerce efforts, which allows theglobe.com to significantly reduce losses while growing revenues.
-- Focusing on higher margin e-commerce revenues derived from the direct sale of video games, and formation of e-commerce partnerships throughout theglobe.com Network.
-- Reducing current bandwidth needs and, hence, related expenditures, at a time when theglobe.com's business is growing.
-- Creating a targeted unique 'closed-loop' marketing solution for games companies to reach gamers at games.theglobe.com , the world leading games information network. Additionally, distributing our popular games content from our seven leading games properties with partners such as AOL UK, Excite UK, Electronics Boutique UK and Netscape UK.
-- Attracting 'beyond the banner' advertising sponsorships that deliver creative solutions to targeted audiences, allowing theglobe.com to obtain higher advertising rates.
-- Recognizing that theglobe.com employees are the Company's most valuable resource and in an effort to enhance shareholder value, the Board of Directors recently approved a voluntary stock option repricing program for all employees, excluding executive officers and Board members. Options held by employees eligible for this exchange represent approximately 20% of all outstanding options. The Company estimates that a total of 1.1 million options may be exchanged for approximately 850,000 repriced options. All options will retain their original vesting schedules, which on average are four years.
theglobe.com is a network of communities that specializes in bringing people together around shared topics of interest. theglobe.com delivers "community" through four different streams: Its flagship website (http://www.theglobe.com) featuring theglobe.com's best of breed community tools and services (e-mail clubs and web site building tools); customized community solutions to other web properties; small business communities; and a vibrant games information network rated number one in the world by Media Metrix. theglobe.com currently distributes community services and games content to CBS Sportsline.com, Time Warner's Road Runner, RollingStone.com, Deja.com, Alloy.com, AOL UK, Excite UK, DirectHit.com, OneMain.com and Chaitime.com.
Safe Harbor -- This press release contains financial information and includes forward-looking statements related to theglobe.com, Inc. that involve risks and uncertainties, including, but not limited to, product delivery, the management of growth, market acceptance of certain products and other risks. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect theglobe.com's future results, please see the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially from management expectations. Copies of these filings are available upon request from theglobe.com's investor relations department. theglobe.com , theglobe.com (logo), globeclubs, Happy Puppy, Kids Domain, Games Domain, WebJump, Chips & Bits, shop.theglobe.com, and uPublish! are service marks of theglobe.com, inc. or its subsidiaries.
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