Free Internet provider NetZero agreed to buy RocketCash Corp., a Mountain View, Calif., company that provides services that allow teens to make online purchases without a credit card. Under the terms of the deal, NetZero will issue about 5.6 million shares of stock for RocketCash, about $36.5 million, according to NetZero's June 28 closing price. NetZero's stock closed down slightly on June 29 at $6.19. The acquisition is expected to be finalized in the fall.
RocketCash users can pool promotional credits, checks, money orders, gift certificates or cash to make purchases through the RocketCash Currency Exchange. RocketCash said it has 110 e-tailers in its RocketCash Merchant Network, including Alloy, Amazon.com and Staples. RocketCash rival PocketCard is also said to be in talks about a potential buyout.
Copyright June 2000, Crain Communications Inc.