Internet merger frenzy continues at a gallop - the latest to join are online auctioneer Onsale and online software retailer Egghead.
Onsale and Egghead announced today a $400 million stock deal to give them the strength to compete on a larger scale in the online marketplace. Between the two companies they claim approximately three million unique monthly visitors.
The new company will be known as Egghead.com. In addition to computer product from Egghead, the company will also feature auctions and sales of surplus goods under the Onsale banner.
Jerry Kaplan, Onsale's chief executive, believes the merger will give it the brand awareness and scale to succeed in Internet retailing.
"Our plan is simple: Combine two top technology retailers to create a clear market leader; pool our marketing budgets to drive a single brand around the Egghead.com name; leaverage the resulting traffic,with Onsale's high visitor to customer conversion rates and increase efficiency by eliminating duplicative operating costs," he said.
For Egghead, the merger represents its change from what was once a “bricks and mortar” chain into a fully fledged online store. In February, Egghead closed the last of its stores and moved all its operations online.
Other recent Internet mergers include [email protected] and iMall, Doubleclick and Netgravity, and Columbus House and CDNow.
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