Investors Infuse $280 Million Into CarsDirect.com
15 November 1999
Investors Infuse $280 Million Into CarsDirect.com
LOS ANGELES---Nov. 15, 1999--Rapidly Growing Internet Car Company Records $280 Million Private Equity Round, Names New CEO to Pave Way for Aggressive Growth
Less than six months after public launch, CarsDirect.com, the leading automotive e-tailer, today announced that it has received commitments to fund $280 million in its latest round of financing -- among the largest private equity placements in dot-com history.
At the same time, the company announced that it has named Robert N. Brisco, formerly president, Universal Studios Hollywood, as its new chief executive officer, effective immediately. Scott Painter, founder and CEO, will become vice-chairman. (See related release dated Nov. 15, 1999.)
All of the company's original corporate and institutional investors -- which include idealab!, idealab! Capital Partners, Primedia Ventures, Foundation Capital, Michael Dell's MSD Capital LP, and Goldman Sachs -- participated in this latest investment round.
New participants in the round include investment banking firms Morgan Stanley Dean Witter, Hambrecht & Quist, and E*O Investors LLC; strategic investments that include Oracle Corp., Liberty Digital, TMCT Ventures and East Peak Partners L.P; and investments from international partners Hikari Tsushin, and Soros Private Equity Partners LLC.
"The investors participating in this round of funding are a major endorsement of CarsDirect.com's strategy and will help us to aggressively pursue the company's business initiatives as well as deliver an unparalleled customer experience," said Bill Gross, co-founder and member of the board of CarsDirect.com.
CarsDirect.com is the first nationwide online service that provides consumers a complete car buying experience -- from research, pricing, customization and financing to flatbed delivery of the car to a home or office.
"We will use the proceeds from this round to build our brand, enhance customer service, and expand our program with our nationwide network of dealer partners," said Painter. "In short, we'll be able to continue to revolutionize the car-buying experience for consumers."
About the New Investors
"We're pleased to be able to further expand the group of investors in CarsDirect.com with this distinguished list," Painter continued.
New CarsDirect.com investors include, among others: East Peak Partners L.P., a San Francisco-based investment firm that invests in both public and private equity; E*O Investors LLC, an E*OFFERING employee private investment fund; Hambrecht & Quist, a leading investment bank focused on financing growth sectors of "the new economy," including the Internet; Hikari Tsushin, a Japanese technology distribution powerhouse; Liberty Digital, a diversified new media company with investments in Internet content and infrastructure and interactive television; Morgan Stanley Dean Witter & Co., a global financial services firm and market leader in securities, asset management and credit services; Oracle Corp.; TMCT Ventures, the fund which was recently formed by Times Mirror and The Chandler Trusts; and a fund advised by Soros Private Equity Partners LLC, an affiliate of Soros Fund Management LLC. George Soros is the founder and chairman of Soros Fund Management LLC.
About CarsDirect.com
CarsDirect.com (http://www.carsdirect.com) is a revolutionary new Internet company that lets consumers complete the vehicle purchase transaction.
With CarsDirect.com, shoppers can research, price, customize, order and finance a new car or truck over the Web -- selecting from among 2,500 makes and models by every major manufacturer. Unlike referral services, which point people to a dealer to accomplish the transaction, CarsDirect.com takes the customer from inquiry through financing right up to delivery.
CarsDirect.com was recently named the top car-buying site on the Internet by Gomez Advisors of Lincoln, Mass.
Based in Los Angeles, CarsDirect.com is an idealab! company.
Note to Editors: In the company names E*O Investors LLC and E*OFFERING, noted in this news release, there is an asterisk between E and O, and E and OFFERING. This symbol may not appear properly in some systems.