Mail order dealer Micro Warehouse has spent $14.5 million to buy Online Interactive, despite huge losses made by the electronic software reseller.
The investment will not pay off until at least next year because Micro Warehouse admits its purchase will continue to make a loss in the second half of 1997, adversely affecting Micro Warehouse?s results. Online Interactive lost an enormous $2.6 million on sales of $3.2 million in its year to 30 June 1997.
The buy is the first major deal struck by former Ingram Micro supremo Chip Lacy since joining Micro Warehouse as chief executive. He said: "This acquisition reflects our belief in the strategic importance of the Internet to our business."
Lacy told 'VNU Newswire' that Micro Warehouse plans to introduce Online?s electronic software model into Europe. "We will take it into Europe by the end of the year, spreading it incrementally and starting with the countries that have a well developed Internet."
He admitted Online?s balance sheet looks bad but the company is not concerned. "All Internet start-ups have profitability issues and it takes a while," he said. "Now we can leap ahead in online business."
Online Interactive and its staff will become a division of the mail order giant, remaining in the Seattle area under CEO John Ballentine, and Micro Warehouse hopes some of its 2.3 million customers will use the division if they decide to buy online. Ballentine founded Online Interactive in 1994.
Molybdenum ditelluride is a two-dimensional material that can be easily stacked into multiple layers to create a memory cell
New light-guiding nanoscale device can control and monitor a nanoparticle trapped in a laser beam with high sensitivity
Optical traps are scientific instruments in which a focused laser beam is used to exert an attractive or repulsive force on a microscopic object to hold it in place
Scientists estimate that the exoplanet has already lost up to 35 per cent of its mass over its lifetime
The observations were made using the Atacama Array in the Chilean desert