Governor's Office Reassures: 'No New Taxes.'
SALT LAKE CITY, July 1 /PRNewswire-FirstCall/ -- Overstock.com, Inc. (Nasdaq: OSTK) today reversed its decision to drop its California-based affiliate advertisers following an afternoon call from Governor Arnold Schwarzenegger's Office, during which the discount e-tailer was assured that the Governor's rejection last night of the affiliate nexus tax bill will stand.
The Governor's Office spoke directly with Overstock.com's Chairman and CEO, Patrick Byrne. 'We couldn't be more pleased to have been directly told,' Byrne stated, 'that the Governor is going to focus on balancing the budget via cost cutting, and not by jamming consumers and small businesses with new taxes. I compliment Governor Schwarzenegger on getting it right.'
Overstock.com responded by assuring the Governor that it would turn back 'on' the advertising feeds from its California-based affiliate advertisers, that only last night it announced it would turn off.
'This is a business-friendly, consumer-friendly, and citizen-friendly stand,' noted Byrne. 'California has a great history for welcoming internet innovation. This decision is evidence that California intends to continue on that path.'
Byrne went on to state that the Governor's Office emphasized that the Governor understood that this issue impacts the state's business reputation, which the Governor wants to remain strong.
'So long as the Governor's feet are planted in concrete, so are mine,' said Byrne. 'We much hope that legislators of other states now toying with the enactment of similar anti-consumer legislation will follow the California lead.'
Yesterday Overstock.com also canceled affiliate advertising contracts in the states of North Carolina, Hawaii, and Rhode Island. Rhode Island's new law is effective; North Carolina and Hawaii have passed legislation, but those states' governors have not yet signed them into law. If those states follow Governor Schwarzenegger's lead, then Overstock.com intends to restart the advertising feeds from its affiliate advertisers based in those states.
About Overstock.com
Overstock.com, Inc. is an online retailer offering brand-name merchandise at discount prices. The company offers its customers an opportunity to shop for bargains conveniently, while offering its suppliers an alternative inventory distribution channel. Overstock.com, headquartered in Salt Lake City, is a publicly traded company listed on the NASDAQ Global Market System and can be found online at http://www.overstock.com. Overstock.com regularly posts information about the company and other related matters on its website under the heading 'Investor Relations.'
Overstock.com(R) is a registered trademark of Overstock.com, Inc.
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements include, but are not limited to, statements regarding reversal of the termination of Internet affiliates. Our Form 10-K/A for the year ended December 31, 2008, our subsequent quarterly reports on Form 10-Q, or any amendments thereto, and our other subsequent filings with the Securities and Exchange Commission identify important factors that could cause our actual results to differ materially from those contained in our projections, estimates or forward-looking statements.
SOURCE Overstock.com, Inc.
