Geocast Bites Dust
By Steve Donohue -- Multichannel News, 3/1/2001 10:54:00 AM
Geocast Network Systems Inc. said it suspended operations, noting that it couldn't obtain financing to continue running the datacasting company.
Financial backers that took a bath on their investments in the company include Liberty Media Group, Hearst-Argyle Television Inc., Electronic Arts Inc., A.H. Belo Corp. and venture-capital firms Mayfield Fund, Kleiner Perkins Caufield & Byers and Institutional Venture Partners.
The Menlo Park, Calif.-based company had cut a deal with EchoStar Communications Corp. last fall to launch the broadband service to PC users during the third quarter. EchoStar spokesman Marc Lumpkin said Dish Network subscribers obviously won't be affected since the company hadn't yet launched the service.
The company also has a deal with StarBand Communications Inc. to offer subscribers with PCs a two-way Internet service, he noted.
Geocast is in talks to sell its assets, the company said in a statement.
'To reach the final stage of execution, we needed additional funding. The current market environment was simply not conducive to our efforts in this regard. We sincerely thank our employees and partners for their commitment and support over the past 24 months,' CEO Joseph Horowitz said in the statement.
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