PointCast
| Company type | Private |
|---|---|
| Industry | Internet technology, Software |
| Founded | 1992 |
| Founder | Christopher R. Hassett |
| Headquarters | Sunnyvale, California , United States |
| Products | Internet push technology software, screensaver streaming live news and data |
Number of employees | 220 (1999) |
PointCast was a dot-com company established in 1992 by Christopher R. Hassett in Sunnyvale, California. It was a forerunner in internet push technology, providing users with direct news updates on their computer displays.
PointCast Network
The company's first offering was a screensaver that streamed live news and data over the Internet using push technology, which was an innovative approach at that period. This product entered beta testing on February 13, 1996, garnering considerable media interest.
Despite the initial buzz, the product struggled commercially, primarily because it consumed excessive bandwidth, causing significant strain on corporate networks and resulting in widespread prohibitions. It also surpassed the limits of standard home dial-up connections and faced criticism for delivering numerous advertisements. Although PointCast supplied corporations with a proxy server intended to minimize bandwidth usage, this solution was insufficient to maintain the business.
Furthermore, the emergence of customizable "portal websites" such as Yahoo, which transitioned from basic directories into personalized news hubs, weakened PointCast’s market share by offering more accessible content delivery alternatives.
News Corporation purchase offer and change of CEO
In January 1997, News Corporation proposed acquiring PointCast for $450 million but retracted the offer by March. While speculation pointed to disagreements over price and revenue projections, James Murdoch attributed the withdrawal to PointCast’s failure to act decisively. Shortly thereafter, the board dismissed CEO Christopher Hassett due to his refusal of the offer, ongoing software issues related to excessive bandwidth consumption, and diminishing market presence amid growing competition from web portals. David Dorman assumed the CEO role five months later with plans to raise $250 million through an IPO in May 1998; however, this initiative was abandoned two months afterward in favor of pursuing strategic partnerships or acquisition opportunities.
Project Newnet
In August 1998, PointCast collaborated with a group of telephone companies and Microsoft to advocate for DSL technology over cable modems via "Project Newnet," utilizing PointCast’s software as a portal interface. The consortium agreed to purchase PointCast for $100 million, finalizing the agreement in December 1998 with an anticipated launch set for April 1999.
Delays ensued, leading to Dorman’s resignation in March 1999 and cancellation of the acquisition shortly after. A restructuring effort resulted in layoffs of 75 out of 220 employees to reduce expenses. Several acquisition offers emerged, including two from former CEO Hassett; all were declined. Ultimately, PointCast was sold in May 1999 for approximately $7 million to Launchpad Technologies, supported by Idealab. The PointCast network ceased operations the following year.
EntryPoint
Launchpad integrated its eWallet product with PointCast’s technology to develop EntryPoint, a no-cost desktop toolbar delivering tailored news, stock updates, and sports information.
Infogate
In 2000, EntryPoint merged with Internet Financial Network to create Infogate, initially offering a free service before transitioning to a paid co-branded model alongside partners such as USA Today and CNN. AOL Time Warner acquired Infogate in March 2003. Subsequently, senior executives Cliff Boro, Vidar Vignisson, and Tom Broadhead founded CVT Ventures, LLC, focusing on accelerating growth for technology startups.