Go2Net Adds Virtual Avenue to Buying Spree

Go2Net Inc., which runs an Internet directory and network of Web sites, said it acquired Web page service Virtual Avenue for about $23 million in stock, a move to build its services for small businesses. Go2Net said it exchanged about 150,000 shares for the closely held company. Go2Net will combine Virtual Avenue, which hosts free Web pages for 85,000 small businesses, with its own HyperMart, which hosts free Internet sites for 190,000 merchants. Go2Net makes money by selling advertising on the sites it hosts, and it plans to unveil software that will let merchants sell goods online. The Seattle-based company has been on a buying spree, purchasing or agreeing to acquire four other companies since June. Belle Mead, N.J.-based Virtual Avenue also runs USA Online, a directory of business Web sites. Go2Net shares rose $9.88 to close at $160.06 on Nasdaq.