The company you are referring to is Zapata Corporation, which was originally a fish-meal and oil exploration company. In 1998 and 1999, it became one of the most famous examples of the dot-com bubble's irrationality by pivoting to the internet.
- The Pivot: In mid-1998, Zapata announced it would transform into an internet portal company called Zap.com.
- The Business Contrast: At the time of the announcement, Zapata’s primary business was processing fish into protein and producing sausage casings.
- Stock Reaction: Shares of Zapata skyrocketed following the announcement of its internet strategy. In a single day in December 1998, the stock jumped nearly 70% (up 4-15/16 to 12-1/8) just by signaling its intent to enter the sector.
- Aggressive Moves: Despite having no web presence, the company made an improbable $1.7 billion bid for the search engine Excite, which was immediately rejected.
- The Outcome: By late 2000, Zapata's board concluded that Zap.com would never be profitable. It ceased all internet operations in December 2000, having recognized virtually no material revenue from its web business
