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interactive local media

Interactive Local Media White Paper

Overture Acquiring FAST and Furiously
Bobbi Loy-Luster , 2/27/2003

Issue: Overture Positions Itself as All-Inclusive Search Provider

News: Pay-for-performance (PFP) search provider Overture Services Inc. is on an acquisition tear aimed at transforming it into a full-service player in the online search space. Last week, Overture announced it will acquire search engine AltaVista Co. for US$140 million. In a follow-up move this week, Overture announced it will acquire the Web search unit of Fast Search & Transfer (FAST) for US$70 million. The two deals are expected to close in April.

Overture has built up a strong base of national advertisers through its paid listing service, but in order to secure future deals, the company realized that adding a general search component is necessary to compete with rivals like Google.

Overture will use AltaVista and FAST as test beds for new ideas to help further Overture's core business of providing pay-for-performance listings (e.g., enhancing AltaVista's paid inclusion model). These deals also provide the ability to use the acquired search technology to offer enhanced search solutions to portals, destination sites and ISPs. These acquisitions not only put Overture on the path toward more partnerships, but also in a position to become a destination site and traffic aggregator. Overture denies, however, that it has designs on the latter.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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