SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Schedule 13G
(Rule 13d-102)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULES 13d-1 (b)
(c), AND (d) AND AMENDMENTS THERETO FILED PURSUANT TO 13d-2 (b)
(Amendment No._______)*
NetGravity, Inc.
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(Name of Issuer)
Common Stock
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(Title of Class of Securities)
641114103
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(CUSIP Number)
December 31, 1998
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(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d-1(b)
[ ] Rule 13d-1(c)
[X] Rule 13d-1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
(Continued on following pages)
Page 1 of 12 Pages
Exhibit Index Contained on Page 11
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<TABLE>
<CAPTION>
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CUSIP NO. 641114103 13 G Page 2 of 12 Pages
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<S> <C> <C> <C> <C>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Vector Capital, L.P. ("Vector Capital")
Tax ID Number: 13-3923497
- ------------ ---------------------------------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b) X
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ------------------------------------ -------- ------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 2,047,029 shares, except that VCP, a general partner of Vector Capital
BENEFICIALLY and Slusky, the managing member of VCP, may be deemed to have shared
OWNED BY EACH power to vote these shares.
REPORTING
PERSON
WITH
-------- ------------------------------------------------------------------------
6 SHARED VOTING POWER
See response to row 5.
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7 SOLE DISPOSITIVE POWER
2,047,029 shares, except that VCP and PBK, the general partners of
Vector Capital, Slusky, the managing member of VCP, and Korsant, the
president and sole shareholder of PBK, may be deemed to have shared
power to dispose of these shares.
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8 SHARED DISPOSITIVE POWER
See response to row 7.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 2,047,029
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
15.5%
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12 TYPE OF REPORTING PERSON*
PN
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<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP NO. 641114103 13 G Page 3 of 12 Pages
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<S> <C> <C> <C> <C>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Vector Capital Partners, L.L.C. ("VCP")
Tax ID Number: 94-3313104
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b) X
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ------------------------------------ -------- ------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 80,000 shares, except that Slusky, the managing member of VCP, may be
BENEFICIALLY deemed to have shared power to vote these shares.
OWNED BY EACH
REPORTING
PERSON
WITH
-------- ------------------------------------------------------------------------
6 SHARED VOTING POWER
2,047,029 shares that are directly owned by Vector Capital. VCP is a
general partner of Vector Capital and may be deemed to have shared power
to vote these shares. Also see response to row 5.
-------- ------------------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
80,000 shares, except that Slusky, the managing member of VCP, may be
deemed to have shared power to dispose of these shares.
-------- ------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,047,029 shares that are directly owned by Vector Capital. VCP is a
general partner of Vector Capital and may be deemed to have shared power
to dispose of these shares. Also see response to row 7.
- ------------ ---------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 2,127,029
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
16.1%
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12 TYPE OF REPORTING PERSON*
OO
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<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP NO. 641114103 13 G Page 4 of 12 Pages
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<S> <C> <C> <C> <C>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
PBK Holdings, Inc. ("PBK")
Tax ID Number: 13-3791747
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b) X
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
- ------------------------------------ -------- ------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 5,520 shares, except that Korsant, the president and sole shareholder of
BENEFICIALLY PBK, may be deemed to have shared power to vote these shares.
OWNED BY EACH
REPORTING
PERSON
WITH -------- ------------------------------------------------------------------------
6 SHARED VOTING POWER
616,560 shares that are directly owned by Ziff Asset Management, L.P.
("ZAM"). PBK is the general partner of ZAM and may be deemed to have
shared power to vote these shares. Also see response to row 5.
-------- ------------------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
5,520 shares, except that Korsant, the president and sole shareholder of
PBK, may be deemed to have shared power to dispose of these shares.
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8 SHARED DISPOSITIVE POWER
2,663,589 shares, of which 616,560 shares are directly owned by ZAM and
2,047,029 shares are directly owned by Vector Capital. PBK is the
general partner of ZAM and a general partner of Vector Capital and may
be deemed to have shared power to dispose of these shares. Also see
response to row 7.
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9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 2,669,109
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10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
20.2%
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12 TYPE OF REPORTING PERSON*
CO
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<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP NO. 641114103 13 G Page 5 of 12 Pages
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<S> <C> <C> <C> <C>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Alexander R. Slusky ("Slusky")
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b) X
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S. Citizen
- ------------------------------------ -------- ------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 25,000 shares issuable upon the exercise of a stock option.
BENEFICIALLY
OWNED BY EACH
REPORTING
PERSON
WITH
-------- ------------------------------------------------------------------------
6 SHARED VOTING POWER
2,127,029 shares, of which 2,047,029 shares are directly owned by Vector
Capital and 80,000 shares are directly owned by VCP. Slusky is the
managing member of VCP, which is a general partner of Vector Capital,
and may be deemed to have shared power to vote these shares.
-------- ------------------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
25,000 shares issuable upon the exercise of a stock option.
-------- ------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,127,029 shares, of which 2,047,029 shares are directly owned by Vector
Capital and 80,000 shares are directly owned by VCP. Slusky is the
managing member of VCP, which is a general partner of Vector Capital,
and may be deemed to have shared power to dispose of these shares.
- ------------ ---------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 2,152,029
- ------------ ---------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
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11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
16.3%
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12 TYPE OF REPORTING PERSON*
IN
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<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
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CUSIP NO. 641114103 13 G Page 6 of 12 Pages
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<S> <C> <C> <C> <C>
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1 NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Philip B. Korsant ("Korsant")
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ] (b) X
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3 SEC USE ONLY
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4 CITIZENSHIP OR PLACE OF ORGANIZATION
U.S. Citizen
- ------------------------------------ -------- ------------------------------------------------------------------------
NUMBER OF 5 SOLE VOTING POWER
SHARES 0 shares.
BENEFICIALLY
OWNED BY EACH
REPORTING
PERSON
WITH
-------- ------------------------------------------------------------------------
6 SHARED VOTING POWER
622,080 shares, of which 5,520 shares are directly owned by PBK and
616,560 shares are directly owned by ZAM. Korsant, the president and
sole shareholder of PBK, which is the general partner of ZAM, may be
deemed to have shared power to vote these shares.
-------- ------------------------------------------------------------------------
7 SOLE DISPOSITIVE POWER
0 shares.
-------- ------------------------------------------------------------------------
8 SHARED DISPOSITIVE POWER
2,669,109 shares, of which 5,520 shares are directly owned by PBK,
616,560 shares are directly owned by ZAM and 2,047,029 shares are
directly owned by Vector Capital. Korsant, the president and sole
shareholder of PBK, which is the general partner of ZAM and a general
partner of Vector Capital, may be deemed to have shared power to dispose
of these shares.
- ------------ ---------------------------------------------------------------------------------------------------------
9 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH
REPORTING PERSON 2,669,109
- ------------ ---------------------------------------------------------------------------------------------------------
10 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9)
EXCLUDES CERTAIN SHARES* [ ]
- ------------ ---------------------------------------------------------------------------------------------------------
11 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW 9
20.2%
- ----------- ----------------------------------------------------------------------------------------------------------
12 TYPE OF REPORTING PERSON*
IN
- ------------ ---------------------------------------------------------------------------------------------------------
<FN>
*SEE INSTRUCTIONS BEFORE FILLING OUT!
</FN>
</TABLE>
<PAGE>
Page 7 of 12 Pages
ITEM 1(a). NAME OF ISSUER:
NetGravity, Inc.
ITEM 1(b). ADDRESS OF ISSUER'S PRINCIPAL EXECUTIVE OFFICES:
1900 S. Norfolk Street, Suite 150
San Mateo, CA 94403
ITEM 2(a). NAME OF PERSON FILING:
This Statement is filed by Vector Capital, L.P. ("Vector Capital"),
Vector Capital Partners, L.L.C. ("VCP"), PBK Holdings, Inc. ("PBK"),
Alexander R. Slusky ("Slusky") and Philip B. Korsant ("Korsant"). The
foregoing entities and individuals are collectively referred to as
the "Reporting Persons."
VCP is a general partner of Vector Capital, and may be deemed to have
shared power to vote and shared power to dispose of shares of the
issuer directly owned by Vector Capital. Slusky is the managing
member of VCP, and may be deemed to have shared power to vote and
shared power to dispose of shares of the issuer directly owned by VCP
and Vector Capital. PBK is a general partner of Vector Capital, and
may be deemed to have shared power to dispose of shares of the issuer
directly owned by Vector Capital. PBK is also the general partner of
Ziff Asset Management, L.P. ("ZAM"), and may be deemed to have shared
power to vote and shared power to dispose of shares of the issuer
directly owned by ZAM. Korsant is the president and sole shareholder
of PBK, and may be deemed to have shared power to vote and shared
power to dispose of shares of the issuer directly owned by PBK or
ZAM, and shared power to dispose of shares of the issuer directly
owned by Vector Capital.
ITEM 2(b). ADDRESS OF PRINCIPAL BUSINESS OFFICE, OR, IF NONE, RESIDENCE:
The address of the principal business office for Vector Capital, VCP
and Slusky is 3000 Sand Hill Road, Building 4, Suite 235, Menlo Park,
CA 94025. The address of the principal business office for PBK and
Korsant is 283 Greenwich Avenue, Greenwich, CT 06830.
ITEM 2(c) CITIZENSHIP:
Vector Capital is a Delaware limited partnership, VCP is a Delaware
limited liability company, PBK is a Delaware corporation and Slusky
and Korsant are U.S. citizens.
ITEM 2(d). TITLE OF CLASS OF SECURITIES:
Common Stock
ITEM 2(e). CUSIP NUMBER:
CUSIP # 641114103
ITEM 3. Not Applicable
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Page 8 of 12 Pages
ITEM 4. OWNERSHIP:
The following information with respect to the ownership of the Common
Stock of the issuer by the persons filing this Statement is provided
as of December 31, 1998:
(a) Amount beneficially owned:
See Row 9 of cover page for each Reporting Person.
(b) Percent of Class:
See Row 11 of cover page for each Reporting Person.
(c) Number of shares as to which such person has:
(i) Sole power to vote or to direct the vote:
See Row 5 of cover page for each Reporting Person.
(ii) Shared power to vote or to direct the vote:
See Row 6 of cover page for each Reporting Person.
(iii) Sole power to dispose or to direct the disposition of:
See Row 7 of cover page for each Reporting Person.
(iv) Shared power to dispose or to direct the disposition of:
See Row 8 of cover page for each Reporting Person.
<PAGE>
Page 9 of 12 Pages
ITEM 5. OWNERSHIP OF FIVE PERCENT OR LESS OF A CLASS:
Not applicable.
ITEM 6. OWNERSHIP OF MORE THAN FIVE PERCENT ON BEHALF OF ANOTHER PERSON:
Under certain circumstances set forth in the limited partnership
agreement of Vector Capital and the limited liability company
agreement of VCP, the general and limited partners of Vector Capital
and the member of VCP may be deemed to have the right to receive
dividends from, or the proceeds from the sale of shares of the issuer
owned by each such entity. In his capacity as the sole shareholder of
PBK, Korsant may be deemed to have the right to receive dividends
from, or the proceeds from the sale of shares of the issuer owned by
PBK.
ITEM 7. IDENTIFICATION AND CLASSIFICATION OF THE SUBSIDIARY WHICH ACQUIRED
THE SECURITY BEING REPORTED ON BY THE PARENT HOLDING COMPANY:
Not applicable.
ITEM 8. IDENTIFICATION AND CLASSIFICATION OF MEMBERS OF THE GROUP:
Not applicable.
ITEM 9. NOTICE OF DISSOLUTION OF GROUP:
Not applicable.
ITEM 10. CERTIFICATION:
Not applicable.
<PAGE>
Page 10 of 12 Pages
SIGNATURES
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement with respect
to myself and the entities I represent is true, complete and correct.
Dated: February 9, 1999
/s/ Alexander R. Slusky
- ----------------------------------------
Alexander R. Slusky, individually and on
behalf of Vector Capital in his capacity
as the managing member of VCP, a general
partner of Vector Capital, and on behalf
of VCP in his capacity as the managing
member thereof.
/s/ Philip B. Korsant
- ----------------------------------------
Philip B. Korsant, individually and on
behalf of PBK in his capacity as the
president and sole shareholder thereof.
<PAGE>
Page 11 of 12 Pages
EXHIBIT INDEX
Found on
Sequentially
Exhibit Numbered Page
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Exhibit A: Agreement of Joint Filing 12
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Page 12 of 12 Pages
EXHIBIT A
Agreement of Joint Filing
The undersigned hereby agree that a single Schedule 13G (or
any amendment thereto) relating to the Common Stock of NetGravity, Inc. shall be
filed on behalf of each of the undersigned and that this Agreement shall be
filed as an exhibit to such Schedule 13G.
Dated: February 9, 1999
/s/ Alexander R. Slusky
- ----------------------------------------
Alexander R. Slusky, individually and on
behalf of Vector Capital in his capacity
as the managing member of VCP, a general
partner of Vector Capital, and on behalf
of VCP in his capacity as the managing
member thereof.
/s/ Philip B. Korsant
- ----------------------------------------
Philip B. Korsant, individually and on
behalf of PBK in his capacity as the
president and sole shareholder thereof.
