Xoom Purchases Paralogic's ParaChat Network

Posted on March 9, 1998

XOOM, Inc., an electronic commerce-based Web community, announced it has acquired ParaChat Network from Paralogic Corporation. ParaChat, a popular chat solution on the Web, has more than 125,000 licensed chat sites, which together with XOOM's homepage sites will boost XOOM's membership to over 400,000.

Additionally, Vijay Vaidyanathan, president and founder of Paralogic, will become XOOM's chief technology officer. Vaidyanathan played a key role in building Paralogic's two core businesses - a cutting-edge chat technology and the popular chat network that leverages that technology.

As part of the agreement, the technology side of Paralogic's business will provide the foundation for the creation of a separate company, Paralogic Software Corporation. XOOM will not own a stake in the new company, but it has agreed to license Paralogic Software Corporation's chat technology and future enhancements to the chat technology XOOM acquired from Paralogic.