Gone To The Great Beyond
Jan 25, 2002, 12:00 AM
Online store operator Beyond.com Corp. has filed for Chapter 11 bankruptcy protection and will agree to be bought by Digital River Inc. for $11.0 million in cash and stock. Beyond.com said the purchase price would be insufficient to cover all of its liabilities, and that shareholders should not expect to receive any distribution upon completion of the bankruptcy proceedings. Digital River, the Minneapolis-based e-commerce player, said the purchase is subject to bankruptcy court approval. Under the terms of the pact, Digital River has agreed to buy substantially all of the assets and customer contracts related to the eStores and governments systems group businesses for $3.5 million cash and $7.5 million in Digital River stock, The agreement also gives Beyond.com an earn-out for an additional $1.5 million in Digital River stock, and provides for certain purchase price reductions in certain events.