IPOs/Recent Issues: BUY.COM –

Aliso Viejo, CA

Went public 2/9/2000 at $13 apiece

Filing Range: 14 mil. shares @ $10 to $12

Shares Outstanding: 129.14 mil. shares

Underwriters: Merrill Lynch

Bear Stearns/Chase H&Q/U.S. Bancorp Piper Jaffray


(Data except per-share in $ thousands)


12/98 12/99

Total Revenue $125,290 $596.848

Net Loss -17,844 -145,829

Net Loss Per Share -.22 -.1.45

The Company:

Buy.com is a multi-category Internet superstore, offering a comprehensive selection of brand name computer hardware and peripherals, software, books, videos, DVDs, computer games, music, clearance equipment, golf related products and consumer electronics at everyday low prices. Through its eight online specialty stores, the company offers more than 850,000 products over a shopping interface that features exensive product information and multi-media presentations. Through its acquisition of BuyGolf.com, Buy.com also offers golf equipment and other related golf accessories. Buy.com outsources the majority of its operating infrastructure, such as distribution and fulfillment functions, customer service and support, credit card processing, and the hosting of our system infrastructure and database servers. The model, which is designed to reduce operating costs, allows the company to add new product categories easily and rapidly, minizes capital expenditures and eliminates the costs and risks of carrying inventory. Under a 50/50 joint venture with United Air Lines, Buy.com is creating an online travel service that will offer a full range of airline tickets, automobile rentals and hotel reservations. After launching Buy.com Canada in December 1999 as a wholly-owned Internet superstore, the company expects to enter into joint ventures with Softbank America and affiliates of News Corp. to form an international joint venture in the United Kingdom, Australia, New Zealand and India.


Of the estimated $141.6 million the company will take in at the offering, management expects to use $20 to $30 million for capital expenditures assoicated with technology and systems upgrades and expansion, $70 to $90 million for sales and marketing activities and about $12.5 million to repay debt.

Venture Backers:

SOFTBANK Technology Ventures, Ingram Capital Inc.

Board Members:

William Burnham, SOFTBANK Technology Ventures September 1999

David Ingram, Ingram Entertainment Holdings Inc. December 1998

Edward Russell, SOFTBANK Technology Ventures August 1998