NetZero Completes Deal to Buy Freei Networks

NetZero Inc. in Westlake Village said it has completed its previously announced acquisition of certain assets of Freei Networks Inc., a national provider of free Internet access.

Freei Networks, also known as Freeinternet.com or Freei, filed for protection under Chapter 11 of the federal Bankruptcy Code on Oct. 6.

NetZero will pay Freei Networks $5 million in cash in exchange for certain key assets of Freei, including the domain names Freeinternet.com, Freeinet.com and Freei.net, and the transition of Freei users to NetZero’s service.

Additional payments may be made under the agreement, depending on the number of Freei users that subscribe to the NetZero service.

Freeinternet.com launched service in December 1998 in the Seattle metropolitan area and expanded to five major metropolitan areas in May 1999. In October 1999, the company launched service in all 50 states and currently serves users in cities throughout North America.

NetZero is a provider of free Internet access to customers who are willing to look at online advertising and share their Internet viewing habits.