in the online sales of DVDs has signed a letter
of intent to be acquired by eUniverse, Inc.
WALLINGFORD, Conn.--(BUSINESS WIRE)--April 27, 1999--eUniverse,
Inc. (a.k.a. Motorcycle Centers of America, Inc.) (OTC BB:MCAMD)
today announced the signing of a letter of intent to acquire
MegaDVD.com, founded in June 1997 and profitable since inception,
is one of the pioneers in online retailing of DVDs and accessories.
MegaDVD.com, which carries almost every DVD title available, has been
featured in Billboard magazine, the Hollywood Reporter and Stereo
"This is a great acquisition for the eUniverse.com network as we
have been looking to make an aggressive move in the DVD arena, as we
believe it's a sector poised to grow dramatically," explained Chairman
Brad D. Greenspan. "MegaDVD.com immediately provides eUniverse with a
loyal DVD-purchasing customer base. More importantly, we are acquiring
great management, as Steve Martin, the founder and CEO of MegaDVD.com,
will join the eUniverse team and be responsible for running the entire
video and DVD online retail stores of the eUniverse.com network."
Forrester Research projects that more than 4.3 million DVD
players will be installed in North America by the end of 1999 and that
penetration will approach 9 million players by the end of 2000. Paul
Kagan Associates projects that annual U.S. retail revenue from
DVD-video sales will be $661 million in 1999, $1.3 billion in 2000 and
$2.9 billion in 2002.
"I am looking forward to working with the eUniverse team," said
Steve Martin, founder and CEO of MegaDVD.com. "I believe that
eUniverse has barely scratched the surface on the sales of DVDs,
videos and related accessories, and I intend to immediately implement
plans, tapping into eUniverse's existing customer base and a growing
network of traffic in order to aggressively grow sales."
It is expected that a definitive agreement between MegaDVD.com
and eUniverse, Inc. will be signed within 7 days and the transaction
will close upon the satisfaction of certain conditions set forth in
such agreement. It is expected that the closing will occur within 21
days. In the transaction, eUniverse, Inc. is issuing common stock to
the shareholders of MegaDVD.com. The terms of the transaction have not
About eUniverse, Inc. (www.euniverse.com)
eUniverse, Inc. is a network of entertainment-focused commerce,
community, and technology driven Web sites.
Through its online commerce property, CD Universe
(www.cduniverse.com, www.videouniverse.com), eUniverse competes
directly with companies such as Amazon.com (Nasdaq:AMZN) and CDnow
(Nasdaq:CDNW). CD Universe has over 275,000 customers and was recently
rated by Bizrate, an independent commerce ranking service, the third
best online shopping site for customer service out of 500 online
Through its recently acquired online property, Cases Ladder
(www.casesladder.com), eUniverse has added over 1 million registered
users and operates one of the largest interactive entertainment
communities on the Internet.
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