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Excite forges new path
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May 15, 1997: 7:15 p.m. ET
Internet search engine to offer new mix of personalization, content
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NEW YORK (CNNfn) - Internet search-engine company Excite Inc. said Thursday it was laying off about 15 employees as it refocuses its strategies following the acquisition of two competitors, Magellan and WebCrawler.
Appearing on CNNfn's "It's Only Money," Joe Kraus, the company's executive vice president and a co-founder, said the company's aim was to streamline operations and offer a broader array of content.
Excite was one of several companies caught up in last year's initial public offering frenzy. The company's shares have see-sawed since their debut, starting out at $16 and peaking at about $21 earlier in the year before sliding back. Excite closed Thursday up 5/8 to 9-5/8.
Kraus said the stock's wild ride is a reflection of general volatility in the tech industry, adding that Excite expects to turn a profit in the first quarter of 1998.
"Basically, we have experienced a huge amount of growth. Wall Street is coming to terms with the advertising business model [for the Internet] and understanding its dynamics," he said.
The company recently reorganized its content into a more personalized format, allowing users to receive their choice of news, stock quotes, local sports, weather and television information as well as other content based on specified interests.
Excite is also rolling out several other services, including Excite Pal, an application that notifies users when friends are online. Pal will also allow users to exchange real-time messages.
Kraus and his partners have come a long way since starting Excite following their graduation from Stanford University. Initial meetings took place in a local burrito shop, moving later to a rented home. Neighbors probably didn't know what to think once investment bankers started to visit, said Kraus. (419K WAV) or (419K AIFF)
How long does he think it will take the Internet to reach critical mass? Hard to tell, said Kraus, although he believes it will be substantially shorter than for radio and television.
"Radio took 38 years, TV and cable [took] 12. It's estimated the Internet will reach critical mass in five," he said, adding that he and his partners never imagined how the business would turn out.
"It's definitely been an interesting rocket ride. I couldn't have imagined doing anything more exciting and fun coming out of school," he said.
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Excite
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