Excite to close sites in Germany, France and Spain

June 7 2001

Excite@Home has announced that it will close its "media operations" in France, Germany and Spain in July and focus its European media business on Excite UK and Excite Italia. By "media operations" Excite@Home means the Excite-branded Websites and related activities.

The closure will not affect Excite@Homes portal operations in the UK, Italy, Japan, Australia or the US. The closure will not impact the broadband joint ventures of Excite@Home (i.e. the "@Home" part of the company).

According to a recent press release Excite@Home takes this step as a result of

"...a weakened Internet advertising environment and its negative effect on the timeframe for ultimate profitability of Excite@Homes media businesses in Germany, France, Spain and smaller European markets. This decision is consistent with the Companys commitment to attain profitability and execute on its substantial broadband market opportunities."

While it is disappointing that market conditions make it necessary to discontinue certain European businesses, it is important for us to continue to focus more closely on our strengths, says Excite@Home chairman and CEO Patti S. Hart. We remain optimistic regarding the growth prospects for Excite UK and Excite Italia, and we will continue to concentrate on delivering value to our shareholders.

The most interesting part of this announcement is probably what it doesn't say. There have been speculations that Excite@Home might abandon the portal/search engine market altogether, even in the US. The fact that the British and Italian Web portals survive, is a clear indication that the American one will stay as well.

This does not necessarily mean that the Excite search engine will live to see the year 2002 -- after all, the company may swap it with pay-per-click results from FindWhat or GoTo. Still, the chances are increasing.

Excite (for national versions, go to the bottom of the American home page.)
Excite@Home to Close Media Operations in Germany, France and Spain (press release)

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