CarsDirect.com to Acquire Greenlight.com; Extends Lead as Largest Multi-Brand Online Car Buying Service.Business Editors LOS ANGELES--(BUSINESS WIRE)--Jan. 31, 2001 CarsDirect.com Gains Market-Leading Dealer Partners, Exclusive Alliance With Amazon.com, Key Auto Industry Leader as New Board Member CarsDirect.com, the leading direct online automotive provider, today announced that the company has agreed to acquire Greenlight.com, the fast-growing online car buying service partnered with Amazon.com (Nasdaq:AMZN AMZN Amazon.com (NASDAQ symbol) ). The merger, which will fully integrate Greenlight.com operations under the CarsDirect.com banner, extends CarsDirect.com's lead as the largest independent multi-brand online car buying service. Terms of the transaction were not disclosed. By combining resources, the company will unite four of the nation's largest dealer groups within the CarsDirect.com national dealer network, bringing the total number of CarsDirect.com priority dealers to almost 3,000. The acquisition will also reinforce the company's continued commitment to building strong dealer relationships by adding another key automotive executive to CarsDirect.com's board of directors, Brian Kendrick Brian David Kendrick<ref name="OWWProfile" /> (born May 29, 1979) is an American professional wrestler currently signed to World Wrestling Entertainment performing on its RAW brand. of Asbury Automotive. In addition, the acquisition will significantly extend CarsDirect.com's marketing reach and growth potential through exclusive partner relationships with Amazon.com and AutoTrader.com. "With the acquisition of Greenlight.com, we are solidifying and extending our leadership position in the online car buying business," said Bob Brisco, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , CarsDirect.com. "CarsDirect.com pioneered direct online car buying, and we continue to lead the industry evolution through technological innovation, consumer advocacy, intelligent investment and partnerships with top automotive retailers. As the largest multi-brand online car buying service, CarsDirect.com is the number one choice for online consumers who demand objectivity, superior service, great selection and guaranteed low, upfront pricing." "By combining the strengths and resources of our two companies, we're delivering a home run for dealers, partners, investors and, most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , consumers," said Joel Manby, CEO of Greenlight.com. "CarsDirect.com and Greenlight.com have always shared a vision of transforming the car buying process into a pain-free and enjoyable experience, designed around clear consumer preferences. Both our business philosophies and practices were developed to help achieve this goal. The consolidation now enables a critical next step -- the creation of a clear market leader with the world-class services, resources, marketing power and the superior dealer network needed to truly delight the growing number of online car buyers." According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Gomez, market potential for online car buying remains enormous: the firm estimates that some 10 million consumers will initiate an automobile transaction online by 2004, with new vehicles representing more than half that number -- an overall revenue opportunity approaching $200 billion. On the financing side, Killen & Associates forecasts that 40 percent of auto loans will be booked online by 2005. "Asbury Automotive initiated the development of Greenlight because it recognized early on that the dealer would be integral to a successful Internet distribution model," said Brian Kendrick, president and CEO of Asbury Automotive. "Today's transaction is a logical next step and validates that the Internet continues to evolve as an important sales channel in automotive retail. We're excited by the prospects that the CarsDirect/Greenlight combination will bring to Asbury's dealerships." Immediately upon closing of the acquisition, Kendrick will be added to the CarsDirect.com board of directors. Kendrick joins Roger Penske Roger Penske (born February 20, 1937 in Shaker Heights, Ohio) is the owner of a very successful automobile racing team Penske Racing, the Penske Corporation, and other automotive related businesses. , chairman of UnitedAuto and Gerald Greenwald, former vice chairman of Chrysler and CEO of United Airlines, as well as idealab! principals Bill Gross and Howard Morgan Howard Morgan (19?? - ) is a retired weather forecaster for Albuquerque, New Mexico television station KOAT-TV, Holdrege, Nebraska station KHOL-TV, and other stations in Kansas and Utah. He was known as "Uncle Howdy" during children's programming in all four states. , who formed the company in 1998. "By incorporating Greenlight and adding new portal partners, CarsDirect.com's marketing reach now extends broader and deeper," said Penske. "We applaud this strategic move, because UnitedAuto Group and Penske Automotive Group Penske Automotive Group (NYSE: PAG), headquartered in Bloomfield Hills, Michigan, is the worlds second largest automotive dealership. Previously called UnitedAuto Group, dealers will be able to reach more qualified customers than ever before." Commenting on the decision to combine efforts, Bill Price, senior vice president of Amazon.com, said: "We're excited to continue our affiliation with this rapidly evolving online industry. The strength of the combined network and the simplicity and convenience of the service will ensure an even better shopping experience for our more than 29 million customers." Leadership Position Solidified via Key Synergies Greenlight.com was founded in 1999 by Asbury Automotive, the nation's largest privately held national automotive dealer group, and top Silicon Valley venture capital firm Kleiner Perkins, Caufield & Byers. "We continue to see tremendous potential for the click-and-mortar business model, and believe that the alliance of CarsDirect.com and Greenlight.com brings together all the right elements for tremendous long-term success," said Russ Siegelman, partner at Kleiner Perkins, Caufield & Byers. Specifically, by acquiring Greenlight.com, CarsDirect.com will:
-- Gain top automotive group retailers in addition to its existing
relationship with UnitedAuto Group/Penske Automotive Group. These
new partners include Asbury Automotive, with more than 100 dealers
throughout the country, representing virtually all makes and
models of cars; Hendrick, the nation's sixth largest automotive
retailer with 61 franchises and 48 dealerships in 10 states; and
Sonic Automotive, with 168 franchises.
-- Become the new exclusive preferred partner of Amazon.com, enabling
CarsDirect.com to reach Amazon.com's 29 million experienced online
shoppers. This adds to the company's marketing reach and builds
upon CarsDirect.com's existing partnerships with Autoweb.com,
Edmunds, and Kelley Blue Book.
-- Add an alliance with AutoTrader.com, the leading Internet
destination in the United States for buyers and sellers of used
cars and for consumers seeking information regarding automotive
products.
-- Experience accelerated growth and operating efficiencies, such as
increased traffic, increased sales through aggregation, and
purchasing efficiencies through combined marketing budgets.
-- Provide an enhanced consumer experience through expanded sourcing
of vehicles from a more extensive dealer network, closer
relationships with the nation's leading automotive retailers, and
additional technology infrastructure resources to meet consumer
need for increased site features and functionality.
About CarsDirect.com Los Angeles-based CarsDirect.com is the leading multi-brand online car buying service, providing new automobiles and related products and services, such as loan and lease financing and in-demand aftermarket Aftermarket See: Secondary market. aftermarket See secondary market. products including extended warranties The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . As the pioneer of the direct online car buying model, CarsDirect.com offers upfront pricing to consumers, who can research, price, order, purchase, insure and finance a vehicle online via an intuitive Web site that offers product information for nearly every make, model and style of new automobile available in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. today. Shoppers can also simultaneously compare the specifications of competing vehicles. CarsDirect.com has received top awards and honors from Forbes Magazine, PC Computing, PC World, Time Digital, Yahoo! Internet Life Yahoo! Internet Life was a monthly magazine published by Ziff-Davis, which licensed the name from Yahoo!, a well known search engine website. It was created and launched by Barry Golson, the former executive editor of Playboy and TV guide. and e-commerce authority, Gomez. The company is funded by idealab!, idealab! Capital Partners, UnitedAuto Group/Penske Automotive Group, Primedia Ventures, Foundation Capital, MSD (MicroSoft Diagnostics) A utility that accompanied Windows 3.1 and DOS 6 that reported on the internal configuration of the PC. A variety of information on disks, video, drivers, IRQs and port addresses was provided. Capital LP, Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. , Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Dean Witter Dean Witter may refer to:
LLC - Logical Link Control , Oracle Corp., Liberty Digital, TMCT TMCT Trailer Mounted Communications Tower Ventures L.P, Hikari Tsushin and Soros Private Equity Partners LLC. About Greenlight.com Greenlight.com was founded in 1999 to bring to new car buying the same convenience, confidence and simplicity that online shopping has brought to other consumer goods consumer goods Any tangible commodity purchased by households to satisfy their wants and needs. Consumer goods may be durable or nondurable. Durable goods (e.g., autos, furniture, and appliances) have a significant life span, often defined as three years or more, and . Greenlight.com has developed a true click-and-mortar model -- combining an online buying experience with the nation's strongest network of local dealers. Greenlight.com is backed by Kleiner Perkins, Caufield & Byers, a leading Silicon Valley venture capital firm, and Asbury Automotive, an automotive retail industry leader backed by Ripplewood Holdings Ripplewood is an American private equity firm that manages more than $10 billion in capital. Ripplewood was founded by its current CEO, Tim Collins. The company's main interests range from telecommunications to banking to entertainment. and Freeman Spogli. |
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