LookSmart: Organisation the Key to Profits

"We need to get big quick . . . and keep growing as fast as we can," said Thornley, at the beginning of a local visit to promote the company's compliance listing on the ASX.

As a result, investors can expect to see some "pretty bold moves on the acquisition front", he said.

And displaying the business sense that has seen his personal wealth increase almost ten-fold in the last 12 months, Thornley would not rule out the acquisition of LookSmart by another company if the price was right.

The LookSmart Internet directory attracts 65 million users worldwide. Of those, 45 million are based in the US and provide more than 90 per cent of the company's income.

Revenues reached $US48.9 million last year, although the company made a net loss of $US74.5 million. Thornley said he expects to turn a profit by the end of 2001.

The compliance listing would see the company jointly listed on the Nasdaq and the ASX, making it easier for Australians to trade in the stock. While the company will not be selling any new shares as part of the local listing, the move would make it easier for LookSmart to raise funds through the local market in the future.

Thornley expects the compliance listing to increase the liquidity of LookSmart's stock as early Australian investors Mezzanine Investments and Macquarie Bank sell their shares, which have netted them a return of almost 100 times what they paid for them.

"While we already have a lot of Australian shareholders, there are a lot of other institutions and individuals that we believe would like to take an interest in the company," Thornley said, speaking from the US last week.

The company will float between $150 million and $200 million worth of shares, which are set to start trading on the ASX next Wednesday. The stock will be priced at 20 times less than the company's ordinary Nasdaq shares -- priced at about $US33 -- which would translate to a local price of around $2.44. The company has forecast the stock price to increase to $4.47 within 12 months.

Thornley said it was a fundamental part of the company's strategy to build its profile as a provider of search and navigation tools to other Websites, as well as building on the www.looksmart.com brand.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

David Smedley

PC World
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?