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The new company, GHS Inc., has no revenues from Net operations. As of September 1999, it did not have a Website. In fact, the company had existed only as an obscure provider of medical services. Now, through what is known as a reverse merger, the company is giving Robbins access to publicly traded stock without the time-consuming, expensive, and disclosure -intensive process of an initial public offering.
Since May 1999, when Wall Street got word that Robbins was coming aboard and GHS would be recreated as a dot.com, the company's stock soared from $.75 to $12. This gave the broker who organized the deal a $48 million dollar paper gain on their original investment. Robbins, who put in no cash, has a stake worth $276 million.
The increased value of GHS stock will enable the group to purchase additional assets. They recently acquired the rights to SanFrancisco-based "The Learning Access" which has more than 700 not-for-credit courses.
Excerpt from Business Week Magazine
Sept. 13, 1999 Pg. 48 By Kathleen
Morris
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To Tony Robbins, success is a matter of "Awakening the Giant Within." In this case, that giant is worth a ton of cash. The broad-jawed spokesman for self-esteem pulls in more than $80 million from sales of books, tapes and seminars annually. And now, he's self-helping his way into the dot.com craze. Trading on little more than name and charisma, the 39-year-old has become chairman and majority owner of a publicly traded Net company whose value now exceeds $480 million. "We are developing the eBay of personal and professional empowerment," says Robbins.
