Shrugging at the Street's distate for dot.coms, online price-comparing website operator
is reviving its plan to raise money on Wall Street. DealTime's IPO will be underwritten by
DealTime runs a website at which surfers can compare prices of products sold online.
DealTime also plans to merge the joint company it established in Europe with German conglomerate
into itself. It will be trimming 47 workers and will also be expanding its marketing network.
Its union with its European subsidiary will bring DealTime $35 million that Bertelsmann allocated for its development. Bertelsmann will thus become DealTime's biggest shareholder.
Of the 47 workers slated for dismissal, 32 are from the company's Israeli research and development center, which employs 225 people. Another 15 will be fired from the company's United States headquarters, which employs 114 people.
"These changes will transform DealTime from a startup into an established business," says company CEO Daniel Ciporin.
No revenue, huge losses
According to the new draft prospectus, dated December 22, 2000, the company intends to raise $50 million.
The draft reveals DealTime's Achilles' heel a lack of significant revenues, plus huge losses. The company ended the first nine months of 2000 with revenues of $3.7 million. Its operating loss for this period came to $45.8 million, and net loss came to $45.6 million.
According to the draft, the shareholders prior to the IPO are Bertelsmann (16.5%),
(10.6%), founder Nahum Sharfman (8%), founder Amir Ashkenazi (6.6%), and CEO Ciporin (2.4%), and