November 4, 1999 5:00 PM PST
Net2Phone grabs AT&T, Priceline deals
Of the 6.3 million shares, Net2Phone will sell 3.4 million shares and hopes to raise an estimated $166.4 million, according to a document filed with the Securities and Exchange Commission. Shareholders, including Net2Phone's parent company IDT, will sell the remaining 2.9 million shares.
The company will use the money for advertising, research and development, potential acquisitions, upgrades to its network, and expansion in international markets.
Net2Phone's technology allows consumers to make phone calls over the Internet. Consumers can download Net2Phone's software and make a phone call from a PC to a regular phone. The company also sells a calling card for telephone calls that are carried over an Internet-based network.
Separately, Net2Phone signed a deal with AT&T. The telecommunications giant is testing Net2Phone's PC-to-phone service, and may offer the service to subscribers of its WorldNet Internet service. AT&T is currently testing the service on its WorldNet beta site, the SEC filing said.
In the Priceline.com deal, Web surfers can bid for Net2Phone's calling cards on the Priceline.com site. Priceline.com allows users to name their own price for airline tickets and hotel packages. If an airline agrees to the price named, for example, Priceline completes the transaction and purchases the ticket for the bidder.
Net2Phone sold 5.4 million shares at $15 each, raising $81 million, in its initial public offering.