The Globe Inc. (TGLO)

TGLO

theglobe.com, incorporated in 1995, began as one of the first social media sites. Created as an online community of registered members worldwide, the network gave users the freedom to personalize their online experiences by publishing their own content and interacting with others with similar interests. Shortly thereafter and coinciding with the Internet boom, theglobe.com decided to go public and made headlines on November 13, 1998. theglobe.com posted the largest first day gain of any IPO in history up to that date, a 606% increase over the initial share price.

The social media continued through the Internet craze of the late 90s, but with hopes of capturing advertising dollars it, like many Internet based companies, suffered with the deterioration of the online advertising market. Faced with restructuring the operations of theglobe.com's online community, Chairman and CEO, Michael S. Egan, and President, Edward A. Cespedes, opted to use theglobe.com as a vehicle to make investments and acquire a portfolio of other Internet media and advertising companies.

From the late 1990s until 2007, theglobe.com's executive team expanded into four primary lines of business. The first line was Voice over Internet Protocol ("VoIP") telephony services. The VoIP-based phone services, called voiceglo, enabled people to use the Internet to make phone calls from anywhere in the world and cost effectively. Secondly, theglobe.com purchased a network of three businesses, specializing in the computer gaming. The network comprised of Computer Games magazine, happypuppy.com, and Chips & Bits. Sentec, Inc. was the third line of business, which brought theglobe.com into the marketing services arena. As a successful response marketing services and technology company, Sentec, Inc., quickly sold at a substantial profit in 2005. The fourth line of business was the acquisition of Tralliance Corporation ("Tralliance"), the registry for the .travel top-level Internet domain.

In March of 2007, management made the decision to shutdown the operations of both its computer games and VoIP telephony businesses. On September 29, 2008, theglobe.com sold the business and substantially all of the assets of its Tralliance Corporation subsidiary to Tralliance Registry Management Company LLC, a private entity controlled by Michael S. Egan, theglobe.com's Chairman and Chief Executive Officer. As part of the sales transaction, theglobe.com will receive an earn-out equal to 10% of Tralliance Registry Management's "net revenue" (as defined) derived from ".travel" names registered by Tralliance Registry Management through May 5, 2015. In connection with the sales transaction, theglobe.com also entered into a Master Services Agreement with Dancing Bear Investments, Inc., a private entity controlled by Mr. Egan, whereby Dancing Bear Investments, Inc. will provide personnel and services to theglobe.com so as to enable it to continue as a public company without the necessity of full-time employees of its own. Services under the Master Services Agreement include, without limitation, accounting, financial reporting, accounts payable, treasury/financial planning, tax, record retention and secretarial and investor relation functions. For more complete information regarding the aforementioned transactions and other information regarding theglobe.com, please refer to theglobe.com's public filings with the Securities and Exchange Commission.

Immediately following the sale of the business and substantially all of the assets of its Tralliance Corporation subsidiary, theglobe.com became a shell company with no significant assets or operations, and has no source of revenue other than revenue related to the "net revenue" earn-out arrangement with Tralliance Registry Management. theglobe.com presently intends to continue as a public company and make all the requisite filings under the Securities and Exchange Act of 1934 to remain a public company.

For more detailed information, please visit the SEC filings under theglobe.com's ticker symbol (tglo).