On the Net ... with UPI

INTERNET M&A SPENDING SLUMPS IN 3RD QTR

Market turmoil and financial scandals contributed to a dramatic decline in Internet mergers and acquisitions in the third quarter of 2002, according to a report by Webmergers.com. The report found acquirers spent $4.8 billion to purchase 217 Internet-related properties in the third quarter, down from the $7.6 billion spent on 314 acquisitions during the second quarter. For the first nine months of this year, Internet merger and acquisition spending plunged almost 50 percent from last year's levels while the number of deals edged down only 3 percent, providing more evidence the slide in Internet valuations is continuing. According to Webmergers.com of San Francisco, spending for the first nine months of 2002 stood at $17.1 billion, compared to $32.5 billion for the same period last year. "A spate of asset sales in (the) third quarter helped contribute to the decline in deal volume," the survey said. "Bargain hunters picked off low-priced technology, intellectual property, customer lists and other assets from ISPs, hosting companies, e-business infrastructure properties and other Internet companies."

HOUSE PASSES INTERNET GAMBLING BILL

The House this week passed legislation to prohibit Internet casinos from taking payments from Americans and would require banks to prevent the use of their credit cards for such gambling. The bill also could require Internet access providers to block entry to gambling Web sites. Rep. James Leach, R-Iowa, the author of the bill, said Internet gambling is effectively already illegal under some federal law and some state laws, but no particular mechanism for enforcement exists. Under the law, operators of Internet casinos that accept bets from Americans could face up to five years in prison. It also would require banks and other financial institutions to prohibit use of their products, such as credit cards and wire transfers, for Internet gambling. "There are few issues more irrationally devastating for the American family than the losses that can accumulate through Internet gambling," said Leach. "It is very important that we drive a stake into the heart of this illegal activity." However, with the Congressional session coming to an end, it was unclear if the Senate would take up similar legislation. If the Senate fails to act on the issue then the bill would die and would have to be taken up by Congress next year.

AOL TO LAUNCH ONLINE AMBER ALERTS

America Online will begin transmitting Amber Alerts about abducted children onto the screens of computers, pagers and cell phones of more than 26 million subscribers in dozens of states and cities. Beginning in November, warnings issued across the patchwork of communities that use the system will go to AOL users in those areas who request to receive them. All but one of the existing Amber Alert systems are participating with AOL. "AOL Amber Alerts are about using the power of the online medium to help protect children both in the online world and the offline world," said Jon Miller, AOL's chairman and chief executive officer. Amber Alerts began in Arlington, Texas, after the 1996 abduction and murder of 9-year-old Amber Hagerman. Law enforcement agencies send broadcasters descriptions of the missing children, their abductors or other information. The alerts also are broadcast in electronic highway signs.

REGISTER.COM NAMES NEW CHAIRMAN

Register.com Inc. has named Mitchell Quain as chairman of the board. Quain, a director of the company since April 2001, assumes the role from Richard Forman, who will remain the company's president and chief executive officer. Quain said the company, the second-largest supplier of Web addresses in the United States, faces near-term challenges. Register.com warned last week it does not expect to meet third quarter revenue and earnings projections, citing slow sales. The company also said Samantha McCuen, a director, has resigned from the company's board to focus on her other investment commitments. She is a managing director of Sandler Capital Management, which was one of Register.com's investors prior to its initial public offering.

TULSATODAY.COM SEES RECORD GROWTH

TulsaToday.com, which has experienced steady growth since its founding six years ago, attracted more than 7.4 million visitors to its site in September, compared to more than 2 million in August, according to David Arnett, the Web site's founder and publisher. The privately held Web site, which relies on advertising, covers local news in Tulsa and throughout Oklahoma with five staff writers and a network of freelance journalists. Stories on the site range from a piece on a city police officer nominated to be police chief, to an investigation into Tulsa street gangs, crime briefs, to regular commentary from the state capital in Oklahoma City. TulsaToday.com also has continuously updated local weather, traffic reports and a crossword puzzle. "There is a niche on the Internet for local news worldwide," Arnett told UPI's On the Net. Arnett also attributed the site's success to the public's appetite for an alternative to the Tulsa World and Daily Oklahoman, the city's leading newspapers. He added the interest in local news will allow them to duplicate the TulsaToday.com model in other cities. The company plans to introduce a new site within the next six months. The Web site either would cover a particular city or maybe a state, he said.

(TulsaToday.com is a client of United Press International)

DEADLINE LOOMS FOR ONLINE JOURNALISM AWARDS

Friday is the deadline for applications for the National Press Foundation's third annual award for excellence in online journalism. The award, which carries a $5,000 prize, will be presented at the foundation's annual black tie dinner in February in Washington. Finalists will be selected by faculty at the S.I. Newhouse School of Public Communications at Syracuse University. Previous winners were washingtonpost.com and the VillageVoice.com. There is no application form. The national Press Foundation says any online site dealing with journalism is eligible, and applicant should e-mail their Web address to npf@nationalpress.org. The organization said news organizations should include a statement about the site and its unique properties, and include information about journalistic achievements in 2002.

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