COMPETITIVE NETWORKING
BIDDING WAR: In an effort to take on leading online auction site eBay (EBAY), several companies have formed a network to share auction information. Microsoft (MSFT), Dell (DELL), Lycos (LCOS) and ExciteAtHome are working with auction service provider FairMarket to list each others' auctions across their sites. Ticketmaster Online-CitySearch will join the consortium next month. EBay's stock fell $10.75, or 7 percent, to $141 on the news.
TAKING STOCK: Eight electronic trading systems signed a nonbinding letter of intent to share trading data and order flow during the after-hours market. If they all choose to link to one another, it would essentially create a centralized order book for the nighttime market, much like the Nasdaq and NYSE provide during the day. ... Separately, CNBC took a 12.4 percent stake in the Archipelago ECN, joining Merrill Lynch (MER), E-Trade, Goldman Sachs and others as backers of the trading network.
OTHER NEWS
BUMPY RIDE: While the general markets held relatively steady last week, Net stocks took a bit of a tumble. For the week, the Dow Jones Industrial Average slid 224.8, or 2 percent to 10803.6, while the tech-heavy Nasdaq index closed at 2869.6, down 11.4 points from last week. After two straight weeks without a single new Net IPO, the drought ended with several strong new issues. Garden.com, which went public at $12 a share, closed its first day of trading at $19.06. Internet consulting firm Luminant Worldwide came out at $18, and closed at $26.38 on its first day. Similarly, PurchasePro.com shares more than doubled on their first day of trading, finishing at $26.13, after going public at $12.
PG ONLINE: Procter & Gamble and Silicon Valley's Institutional Venture Partners (dossier) have invested $50 million to form a cosmetics e-commerce business. Dubbed Reflect.com, the site will launch in time for the holiday season. Shoppers will be able to buy customized cosmetic products from P&G brands such as Cover Girl and Max Factor at Reflect.
ENCRYPTION PRESCRIPTION: The White House last week sought to end its stalemate with Congress over export controls on mass-market encryption software. The Clinton administration issued a policy allowing any product of any key length to be exported without a license, after review, to firms in countries that are not considered by the government to be terrorist states. The banned countries are Iran, Iraq, Libya, Syria, Sudan, North Korea and Cuba. Previously, companies had to obtain a license from the government to export encryption products higher than 56 bits in key length.
F-TV: CBS (dossier)' MarketWatch.com announced the debut of a weekend television program covering new-media and financial news, to be carried initially on many of the CBS-owned-and-operated stations. The program represents the network's largest commitment to date of airtime devoted to financial news, as well as the broadest television exposure for any online financial-news site. MarketWatch rival TheStreet.com recently launched its own weekly television program, carried on the Fox News Channel.
REDMOND MOVES: Microsoft plans to make Web development easier with a variety of Web building blocks (or "megaservices") that will develop and license to third-party sites. The first of the megaservices, which Microsoft will host on its servers, is the Passport electronic wallet. ... Microsoft spent $1.6 billion for Seattle-based Visio (VSNA), a maker of flowchart and design software. ... MSN is offering one-year and two-year Internet access deals for $69 and $99 through retailer MyShoppingClub.com. ... The Gates Foundation kick-started the Gates Millennium Scholars Fund for minority students; the foundation will donate $50 million a year to the fund for the next 20 years.
VENTURE NEWS: Financial Web site Motley Fool raised $26.5 million in its first round of venture funding from Maveron and the Mayfield Fund (dossier). ... Garage.com raised $12 million from strategic investors including E-Trade and CS First Boston. ... Buy.com raised $165 million from a group of international venture-capital firms led by Softbank Capital Partners.
NOTED: Visa formed eVisa, a
