PointCast founder out as bidder
Financially struggling PointCast is no longer considering an investment offer from company founder Chris Hassett.
Hassett, who was seeking to take a controlling interest in the company, made a final offer to PointCast officials yesterday, but the company allowed the deadline to expire, said a source familiar with the deal.
"With the deadline expired, Chris has decided not to pursue an investment with PointCast," said a source.
Hassett, in an interview last week, said his initial offer was rejected because the company wanted less restrictive wording in the offer, but that the two parties had resumed negotiations. The final offer yesterday was the latest in that development.
A spokeswoman for Hassett's new business venture, PrizePoint, declined comment.
But a spokeswoman for PointCast said: "Chris Hassett was one of a handful of parties that initially made an inquiry into PointCast. He, as a number of other parties, have been moving through the process with us. Today we have a number of offers on the table, but at this point we don't believe Chris is one of them."
The PointCast spokeswoman declined to comment on when the company expects to move forward with one of the other parties. PointCast, which earlier this month cut a third of its workforce after an acquisition deal with a consortium of telcos fell through, has been seeking $15 million to $20 million via an investment or a buyer.
Softbank was another company that was initially interested in PointCast, but it decided not to participate in PointCast's new financing efforts, Softbank technology ventures managing partner Gary Rieschel said in an earlier interview. Rieschel said Softbank did not want to devote the resources and work needed for a turnaround situation.
Another company that has been looking at PointCast is E*Trade, sources close to PointCast said. E*Trade executives declined comment.