September 19, 2003 — (WEB HOST INDUSTRY REVIEW) — Performance-based Internet marketing services provider FindWhat.com (FindWhat.com) announced on Friday that it is engaging in further negotiations with regard to its previously-announced agreement to merge with Espotting Media Inc. (ESpotting.com).
The further negotiations resulted from FindWhat’s post-signing examination of Espotting’s historical and projected financial performance. FindWhat says it is retracting all its previous statements regarding Espotting’s historical and projected performance, specifically those relating to the company’s profitability and its post-closing pro forma financial expectations, including comments made in press releases, SEC filings and management conference calls.
FindWhat says the companies are reserving their rights under the existing Merger Agreement, and may negotiate to modify the terms of the transaction. FindWhat believes that a successful renegotiation of the terms will, at least, include the reduction of the purchase consideration, as well as certain other material changes to the existing agreement.
It is possible, says the company, that agreeable terms will not be reached, and the merger may not be completed.
