Circle.com Comes Up Short
Snyder Communications Inc.'s Circle.com, the Bethesda marketing company's Internet business division, doesn't have enough cash to fund its operations through the end of this year, Snyder said in its quarterly filing this week.
Circle.com, based in Baltimore, is mostly owned by Snyder Communications, but Snyder created a tracking stock late last month to give the company a market value.
In the filing, Snyder said it would have to put more capital into Circle.com, issue more shares of Circle.com stock or seek a third-party lender for Circle.com. If Snyder has to sell more Circle.com stock, it would likely result in a dilution of existing Circle.com shareholders.
Snyder Communications is controlled by Redskins owner Daniel M. Snyder.
Savvis's Big Sale
Savvis Communications Corp. of Reston filed an application with the Securities and Exchange Commission to sell $75 million worth of common stock.
The Internet service provider and networking company said the proceeds of the offering will be used to expand the Savvis network and to support more sales and marketing.
Bridge Information Systems Inc. holds a 74.8 percent stake in Savvis.
Meanwhile, Savvis this month named Robert McCormick as interim CEO, replacing Clyde Heintzelman, who recently became CEO of Net2000. [Related article, Page 8]
Aether Stays Hot
Aether Systems Inc., the Owings Mills company that sold stock last month in one of the hottest IPOs in the region this year, posted its first quarterly results as a public company this week.
Aether's third-quarter revenue increased threefold, to $1.5 million, while its net loss during the quarter was $2.85 million. For the first nine months of the year, Aether lost $7.17 million on revenue of $2.28 million.
Aether provides wireless data services for hand-held devices that enable users to view information and conduct transactions -- such as stock trades -- anywhere. It raised $102.7 million in its IPO, and its stock has been strong even for a high-tech IPO. It shot up more than $10 Friday to close at $88.
Sinclair Broadcast Group Inc. in Baltimore has secured a major equity position in an online beauty products retailer.
Sinclair, one of the biggest owners of television and radio stations in the country, entered into the deal with Synergy Brands Inc., owner of BeautyBuys.com. Sinclair will invest cash, advertising and media services into BeautyBuys in exchange for a 16.5 percent stake. Synergy is a publicly traded consumer products distribution and marketing company. BeautyBuys sells brand-name cosmetics, fragrances and a variety of other health and beauty items.
Sinclair will provide BeautyBuys up to $50 million in advertising on Sinclair stations and $18 million in media services. In return Sinclair will get stock in BeautyBuys, three seats on BeautyBuys' board and one seat on Synergy's board.