EXHIBIT 99.1
Inktomi Investor Contact: Inktomi Media Contact:
Vishal Makhijani Julie Keslik
Inktomi Corporation Inktomi Corporation
(650) 653-3072 (650) 653-3074
[email protected] [email protected]
The Walt Disney Company GO.com:
Christine Castro Eric Handler
(818) 560-6427 (818) 623-3913
[email protected] [email protected]
Inktomi to Acquire Ultraseek Corporation
GO.com to Sell Its Corporate Software Business
Inktomi to Extend Search Capabilities into Growing Enterprise Market
FOSTER CITY, Calif., June 8, 2000 Inktomi Corp. (NASDAQ: INKT),
developer of scalable Internet infrastructure software, today announced
that it has signed a definitive agreement to acquire Ultraseek Corporation,
a subsidiary of GO.com, the Internet business of The Walt Disney Company
(NYSE:GO). The acquisition will enable Inktomi to extend its search
capabilities into the enterprise market, building on its current position
in the general Internet search market. Ultraseek provides a scalable and
customizable search and navigation software solution to businesses for
their corporate intranet and extranet sites.
"Todays acquisition solidifies Inktomis position as a leading
provider of search technology to a range of customers worldwide," said
David Peterschmidt, president and CEO of Inktomi. "Our move into the
enterprise market sets the agenda for the delivery of search and navigation
software for intranet and extranet sites. Ultraseeks proven technology and
extensive customer base makes it an excellent fit for our organization."
GO.com Chairman Steve Bornstein said, "The divestiture of the
Ultraseek enterprise business highlights GO.com's commitment to focus on
and enhance its position as a leading provider of consumer entertainment,
information and services on the Internet, and fully leveraging the creative
strength of The Walt Disney Company. GO.com will retain its world-class
consumer search technology and services, which are integral components of
its leading Web properties such as the GO.com portal, ESPN.com and
Disney.com.
"While Ultraseek's enterprise software is not closely linked to
our consumer-oriented business, it is a valuable asset and a strong fit
with Inktomi's business. As such, we believe this transaction is a win-win
for both GO.com and Inktomi," Bornstein added.
With the addition of Ultraseek, Inktomi can deliver a robust and
easy-to-use packaged search solution to the growing Enterprise Information
Portal market, which is projected to reach $14B by 2021. Recognizing the
need to solve complex scalability and integration issues similar to
Internet portals, companies demand high-quality, high-performance search as
a standard for their corporate intranet and extranet data. Inktomis leading
search services combined with Ultraseeks proven packaged search technology
will provide a solid range of solutions to existing and future customers.
Inktomi will acquire 100 percent of the outstanding stock and
assume all stock options of Ultraseek in exchange for $3.5 million in cash
and shares of Inktomi common stock valued at $341.2 million. Of the total
consideration, $317.5 million will be provided to GO.com. Inktomi will
account for the transaction under the purchase method of accounting. The
transaction is expected to close in the September quarter, subject to
customary closing conditions. Following closing, Ultraseek will operate
under the Inktomi name with all employees of Ultraseek joining Inktomi.
About Go.com
GO.com, the Internet business of The Walt Disney Company, manages
some of the Internet's most popular Web sites, including the GO.com portal,
as well as ABC.com, ABCNEWS.com, ABCSports.com, Disney.com,
Disneystore.com, DisneyTravel.com, ESPN.com, ESPNstore.com, EXPN.com,
Family.com, Movies.com, Mr. Showbiz, NFL.com, NBA.com, NASCAR Online and
Soccernet. Steven M. Bornstein is the chairman of GO.com, which is
headquartered in North Hollywood, California, with operations in Sunnyvale,
California, Seattle, New York, Bristol, Connecticut, and London.
About Inktomi
Based in Foster City, Calif., Inktomi develops and markets scalable
infrastructure software designed for ISPs, content delivery and hosting
providers, Web portal and commerce sites, wireless operators and global
enterprises. Inktomi portal services include the search, directory, and
commerce engine applications; network products include the Traffic Server
network cache platform, Content Delivery Suite and associated value-added
service applications. Inktomi's customer and strategic partner base today
includes such leading companies as America Online, British
Telecommunications, CNET, Excite@Home, Intel, Merrill Lynch, Microsoft,
RealNetworks, Sun Microsystems and Yahoo! The company has offices in North
America, Asia and Europe. For more information, visit www.inktomi.com.
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Investors are urged to read documents relevant to the acquisition
described in this announcement that are to be filed with the U.S.
Securities and Exchange Commission (the "SEC") or the Secretary of State of
California, because they contain important information about the
acquisition. You can obtain the relevant documents that are filed with the
SEC for free on the SECs web site at http://www.sec.gov or from Inktomi.
You can request copies of such documents by calling Daniel Jochnowitz at
650-653-5461or writing to: Inktomi Corporation, 4100 East Third Avenue,
Foster City, CA 92651 Att: Daniel Jochnowitz.
Except for the historical information contained herein, this press
release contains forward-looking statements that involve risks and
uncertainties. Actual results may differ materially from the results
predicted and reported results should not be considered an indication of
future performance. The potential risks and uncertainties include, among
others, Inktomi's limited operating history, history of losses, substantial
dependence on Network Products, need to attract and retain portal customers
and merchants, uncertainty of market acceptance, risks associated with
acquisitions and entry into new markets, and substantial competition. For
factors that could affect the business and financial results, see "Factors
Affecting Operating Results" contained in our Quarterly Report on Form10-Q
filed with the Securities and Exchange Commission on May 15, 2000. Inktomi
cautions readers not to place undue reliance upon any such forward looking
statements, which speak only as of the date made. Inktomi expressly
disclaims any obligations or undertaking to release publicly any updates or
revision to any such statements to reflect any change in Inktomi's
expectations or any change in events, conditions or circumstances on which
any such statement is based.
Copyright(C)2000 INKTOMI CORPORATION. All Rights Reserved.
Inktomi, Traffic Server, Scaling the Internet and the tri-colored cube logo
are all trademarks or registered trademarks of Inktomi Corporation. All
other company and product names referenced herein are the trademarks or
registered trademarks of their respective holders.
