Bamboo.com, Inc. to purchase Interactive Pictures Corp. for 43.46 times revenue

Weekly Corporate Growth Report, Nov 8, 1999

The Deal: Bamboo.com, Inc. and the Interactive Pictures Corporation have agreed to merge. This merger will create a new company with a market capitalization of $850 million. Interactive Pictures shareholders will get 1.369 shares of Bamboo.com for each share. Each company will have an approximately equal interest in the combined company. Bamboo.com's shares rose 75 cents each, to $17.00, and Interactive Pictures shares rose $1.125, to $22.125, in Nasdaq trading after the deal was announced.

Discussion: Bamboo.com, Inc. provides virtual tours of real estate properties for sale or rent in more than 100 metropolitan areas across the US and Canada. The tours allow users to view the inside and outside of properties, panning right and left or zooming in for a better look. Bamboo.com charges real estate agents a one-time fee to videotape a property, convert the videotape into a virtual tour, and distribute the tour through Internet sites or e-mail. The company markets its tours through agreements with Web sites such as REALTOR.com and HomeBuilder.com.

Interactive Pictures IPIX technology is used by travel and hospitality (Marriott), publishing (New York Times), real estate (ERA), education (National Geographic), and entertainment (Disney) companies to enhance multimedia content, interactivity, and e-commerce on Web sites. Its Wizard software converts two photos taken with a digital camera into one IPIX image. The company also sells IPIX-ready digital cameras and accessories and offers multimedia services.