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LookSmart is a search advertising and technology company. It provides search, machine learning and chatbot technologies[3] as well as pay-per-click and contextual advertising services.

LookSmart
LookSmart logo.png
Founded
  • 1995 (1995) (as Homebase)
  • October 1996 (as LookSmart)[1]
HeadquartersHenderson, Nevada, US
Founder(s)
Websitelooksmart.com
Alexa rank184,689 (11 February 2019)[2]

LookSmart also licenses and manages search ad networks as white-label products. It abides by the click measurement guidelines of the Interactive Advertising Bureau.[4]

LookSmart also owns several subsidiaries, including Clickable Inc., LookSmart AdCenter, Novatech.io, ShopWiki[5] and Syncapse.[6]

The current CEO of LookSmart is Michael Onghai[7] and the company is headquartered in Henderson, Nevada.[8]

Contents

EtymologyEdit

The name "LookSmart" is a double entendre, referring to both its selective, editorially compiled directory and as a compliment to users who "look smart".[9]

HistoryEdit

1995-1998Edit

LookSmart was founded as Homebase in 1995 in Melbourne, Australia by husband and wife Evan Thornley and Tracy Ellery, executives of McKinsey & Company.[10]

Reader's Digest invested $5 million in the company for an 80% stake.[10] On October 28, 1996, the company launched its LookSmart search engine.[11] At launch, the search engine listed more than 85,000 sites and had a "Java-enhanced" interface.[11] In June 1997, the search engine underwent a major redesign, dropping its original Java-based browsing system.[12] After leadership changes at Reader's Digest, the company was sold back to the founders as well as Martin Hosking, with Reader's Digest providing a $1.5 million loan and retaining a 10% equity stake.[10]

In 1998, the company reached an agreement to provide directory and listing services for Microsoft. The deal provided the company with $30 million upfront and guaranteed payments of $5 million per year for 5 years.[10] Also in 1998, a search box was added to the LookSmart search engine along with People Search, Yellow pages, Discussions and shopping search.[13] In May 1998, the company raised $2.3 million from Amwin and $6.0 million from Cox Media Group and Macquarie Group and was valued at $23.2 million.[10] On December 21, 1998, LookSmart stopped accepting pornographic ads.[14]

1999-2001Edit

By 1999, the company had 500 employees and LookSmart was the twelfth most visited website worldwide with 10 million users, behind AltaVista.[10] In late-March 1999, the company raised $59.6 million based on a post-money valuation of $430 million from Amerindo Investment Advisors, Citicorp Equity Capital, Cox Interactive Media, Hambrecht & Quist and others.[10][15] In May 1999, LookSmart formed a strategic partnership with direct-response marketing company Guthy-Renker and acquired some of their assets from their e-commerce division for $3 million.[16][17] On August 20, 1999, during the dot-com bubble, the company became a public company via an initial public offering on the NASDAQ, debuting at $12 per share and raising $92.4 million based on a $1 billion valuation for the company.[10][18] By October 1999, the stock price would reach $30 per share, giving the company a market capitalization of $2.5 billion.[19] The founders' 15% stake was worth $375 million.[20]

In 2000, FindArticles, a website which provided access to articles previously published in magazines, journals, and other sources, was founded[21][22][23] as a partnership between LookSmart, which authored the search technology, and the Gale Group, which provided the articles for a fee.[24][25][26]

On February 24, 2000, LookSmart started trading on the Australian Securities Exchange.[27] In March 2000, their stock price peaked at over $70 per share.[10][28] On May 30, 2000, Juno Online Services reached an agreement with LookSmart to provide Juno's subscribers access to LookSmart's directory and LookSmart's stock jumped 8%.[29] On July 26, 2000, AltaVista reached an agreement with LookSmart for it to be their exclusive directory provider.[30] In October 2000, the company acquired Zeal for $20 million.[28][31] The founders only sold around 5% of their stock before the dot-com bubble burst.[32] As a result of the dot-com bubble bursting in late 2000, the company fired 172 employees or 31% of its staff in January 2001 to cut costs.[33] Also in January, LookSmart shut down Inside The Web and LookSmart Live! due to them being unrelated to their core business model.[17] On January 17, 2001, the company reached a deal to provide product categories from its directory to Amazon.[34]

2002-2003Edit

In 2002, BT LookSmart acquired UK Plus for an undisclosed amount.[35] In March 2002, the company announced that they would be acquiring WiseNut for $9.25 million in stock.[36] LookSmart completed their acquisition of WiseNut in April.[37] On May 7, 2002, LookSmart expanded their strategic relationship with InfoSpace by having LookSmart's search listings appear on metasearch engines Excite and WebCrawler.[38] In June 2002, Thornley resigned as CEO but stayed on as chairman[39] and three of the seven members of the board of directors resigned in response, including Robert Ryan, Myriann Byerwalter and James Tananbaum.[39][40] On October 1, 2002, Jason Kellerman became the CEO of LookSmart, having previously served as COO of the company.[41]

In January 2003, LookSmart acquired Intellectual property rights from Grub for $1.3 million in cash and stock.[42] On March 6, 2003, LookSmart announced that they had renewed an agreement with Time Warner Cable's Road Runner division to continue providing directory listings for Road Runner subscribers.[43] On July 9, 2003, LookSmart announced that they had reached an agreement to provide listing services in the United States for web portal Terra Lycos.[44]

In August 2003, LookSmart stated in a financial report that Microsoft, which accounted for 64% of the company's listing revenues in the last 6 months and 70% of the company's overall revenue, started testing its own search technology without LookSmart's listings on some of its websites in the United Kingdom and LookSmart's stock dropped more than 20% on August 15 and continued dropping on August 18.[45][46] Also in August, William Lonergan became the new CFO of LookSmart.[47] In October 2003, LookSmart reintroduced its bid-for-placement ads in order to compete with Google and Yahoo!, which were previously offered through LookSmart's UK division.[48] On October 6, 2003, Microsoft announced that it would not renew its agreement with LookSmart and the company's stock price plunged 52.3% in a day and its stock fell to $1.44 per share.[45][49][50] In response to this, LookSmart fired half of its employees in December 2003.[51]

In September 2003, the company settled a lawsuit filed in May 2002 by Legal Staffing Partners after the company converted thousands of websites that originally had paid a onetime submission fee into a cost-per-click payment model.[10][52]

In 2003, LookSmart had a net income of $5.8 million and made $140.9 million in revenue.[53]

2004-2009Edit

In January 2004, the company sold its Australian operations to Telstra's online division Sensis and most of LookSmart's 30 employees in Australia started working for Sensis.[20] Also in January, Jason Kellerman resigned as CEO of LookSmart and was temporarily replaced as CEO by Damian Smith.[54] Starting on January 15, 2004, LookSmart's directory listings were no longer shown on MSN Search.[49] In April 2004, LookSmart acquired Net Nanny from BioNet Systems, LLC for $5.3 million in stock and cash.[55] On July 1, 2004, Teresa Dial replaced Thornley as chairman of the company.[56] In September 2004, LookSmart acquired Furl.[57] In October 2004, David Hills was appointed CEO.[58]

On March 29, 2005, LookSmart launched five vertical search engines in an effort to provide "niche audiences with essential search results".[59] In May 2005, LookSmart started providing Ask.com with its sponsored listings.[60] On March 28, 2006, LookSmart closed the Zeal directory.[61] On November 17, 2006, Gary Wetsel resigned from the company's Board of directors.[62]

In January 2007, ContentWatch Inc. acquired Net Nanny from LookSmart.[63] John Simonelli, the CFO and COO of LookSmart, resigned in June 2007.[64][65] On July 17, 2007, the company sold Grub to Wikia[66] for $50,000.[31] On August 1, 2007, David Hills resigned as CEO of LookSmart and Edward West was appointed CEO the same day.[58][67] Also in August, LookSmart's management made the decision to exit consumer products and sell or dispose of their websites and assets associating with their consumer properties revenue stream.[31] Further developments in 2007 included Michael Grubb resigning as CTO of LookSmart on September 7, 2007,[68] LookSmart closing WiseNut in late-September,[69][70] the company delisting from the Australian Securities Exchange on October 1,[71] the company selling Zeal on October 15 for $50,000,[31] the company selling FindArticles to CNET Networks on November 9 for $20.5 million,[31][72][73] and William Bush being appointed CFO of LookSmart on December 20.[74]

In March 2009, the company sold Furl to Diigo.[75] In May 2009, Ask.com, which accounted for 89% of LookSmart’s Company Publisher Solutions revenue in the first quarter of 2009, announced that it would not renew its contract with LookSmart for sponsored listings.[60] On July 21, 2009, LookSmart fully released SmartRotation, a cost-per-action tool that served ad creative in an ad group based on conversion data from a web beacon.[76] In December 2009, Jean-Yves Dexmier became the CEO of LookSmart.[77] On December 31, 2009, Ask.com ended its contract with LookSmart for sponsored listings.[60]

2013-presentEdit

In February 2013, Michael Onghai became the CEO of LookSmart.[78] On September 2, 2013, LookSmart's Canadian subsidiary, LookSmart Canada Ltd., acquired assets of Syncapse Corp. upon court approval for $3 million.[79] By July 16, 2015, the company had a market capitalization of around $3.6 million and its stock price was at $0.63 per share.[80]

In October 2015, the company transferred all of its assets to its subsidiary, LookSmart Group Inc. and spun off the ownership of LookSmart Group to its shareholders.[81] LookSmart, Ltd., the company's former entity, completed a merger with Maritime Technologies Corp., a subsidiary of Pyxis Tankers Inc., on October 28.[81]

On March 24, 2017, LookSmart Group Inc. completed a merger with its subsidiary, LookSmart Capital Inc. and announced that it would de-register its common stock and suspend its public reporting obligations.[82]

On April 3, 2017, LookSmart Group announced the launch of its new data center building located in Central Phoenix, Arizonaas a technology center, Silicon Canyon.[83] On April 13, 2017, LookSmart Group announced partnerships with the Clickable Institute of Technology, Entrepreneurship and Digital marketing and Richie Bello West to help veterans, minorities and immigrants at Silicon Canyon.[3]

ReferencesEdit

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