HITS Daily Double
Not part of Kozmo.com's inventory... yet.


Company Seeks to Raise $150 Million In Stock Offering
Talk about delivering the goods.

Kozmo.com, which promises to bring CDs, videos, books, food and other consumer products to your home within an hour, has filed registration papers for a public stock offering that could raise as much as $150 million.

The announcement comes a day after the company received a $60 million equity invesment from Amazon.com, Inc. The IPO will be underwritten by Credit Suisse First Boston Corp., Salomon Smith Barney Inc. and U.S. Bancorp Piper Jaffray.

In its Securities and Exchange Commission filing, the company says it plans to use the funding for general corporate purposes, including capital expenditures, working capital and tipping the delivery boys.

Launched in New York in '97, Kozmo has since expanded to Boston, Chicago, L.A., San Francisco, Seattle and Washington, DC. They plan to enter ten more markets before the end of the year.

In fiscal '99, the company realized revenues of $3.5 million and losses of $29 million, which are figures that Amazon.com, who now hold a 31.8% stake in the company, can surely understand, even if noted Net economy castigator Barron's magazine cannot.

Lat month, Kozmo agreed to pay coffee retail behemoth Starbucks Inc. $150 million over the next five years to sell its products in exchange for in-store promotion and a co-marketing relationship. That's a lotta mocha frapuccinos... The deal gives the java giant an option to take an equity stake of as much as 5% in the upcoming round of financing for the company. Other potential investors include Ticketmaster Online-City Search, which inked a deal in January to use the delivery service as its exclusive general delivery provider.