TheGlobe.com
TheGlobe.com was an early social-networking and internet-media company that became a leading symbol of the dot-com bubble before contracting into a publicly traded shell company.
Last updated November 4, 2026
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Overview
TheGlobe.com was an internet company founded in 1995 by Cornell University students Stephan Paternot and Todd Krizelman. Its original service was an online social community built around chat rooms, user interaction, and interest-based groups. The founders became interested in the commercial potential of online communities after encountering a basic chat system on Cornell's computer network. They raised $15,000 during the 1994 Christmas break, purchased an Apple Internet Server, and began building the service through a programming venture called WebGenesis. TheGlobe.com launched on April 1, 1995, and attracted more than 44,000 visits during its first month. The company recruited extensively from Cornell's computer-science community and had grown to 17 employees by its first anniversary. The company benefited from the rapid expansion of consumer internet use during the late 1990s. In 1997, it obtained $20 million in financing through Dancing Bear Investments, allowing it to expand its staff, technology, and commercial ambitions. TheGlobe.com subsequently broadened its activities beyond social networking into online publishing, computer gaming, electronic commerce, and other internet services. Its acquisitions included Computer Games magazine, the gaming website happypuppy.com, and the online games retailer Chips and Bits. TheGlobe.com's public offering on November 13, 1998, became one of the defining events of the dot-com era. The planned IPO price was $9 per share, but the first trade occurred at $87, the stock reached $97 during the day, and it closed at $63.50. The company issued 3.1 million shares and raised $27.9 million. Its first-day increase of approximately 606 percent was, at the time, the largest first-day gain recorded for an IPO. The offering briefly gave the company a market capitalization of more than $840 million and made its young founders exceptionally wealthy on paper. The valuation proved unsustainable. In 1999, media coverage of co-founder and chief executive Stephan Paternot's conspicuous lifestyle turned him into a public emblem of internet-era excess. At the same time, investor confidence in unprofitable internet companies began to weaken. TheGlobe.com's share price fell from its high of $97 to less than ten cents, while its market capitalization declined by more than 95 percent to roughly $4 million in 2001. Paternot and Krizelman were removed from management in 2000, and the company entered a prolonged retrenchment. It closed its flagship social-networking site and laid off approximately half of its workforce in August 2001. After the original service was shut down, TheGlobe.com continued selected publishing and internet businesses. It operated Computer Games magazine and later introduced Now Playing magazine and MMO Games magazine. In 2003, it launched GloPhone, a voice-over-internet-protocol service positioned as an alternative to services such as Skype. GloPhone was associated with Friendster, but it received unfavorable reviews, generated weak sales, and was later the subject of a patent-infringement action brought by Sprint Nextel. GloPhone ceased operations on March 13, 2007. The company also became involved in litigation over unsolicited messages sent to MySpace users. A California court found against TheGlobe.com under the federal CAN-SPAM Act and a comparable California anti-spam statute. The anticipated exposure from the case, reportedly potentially reaching a very large federal judgment, contributed to the company's collapse. The company's magazines ceased publication and Chips & Bits closed. TheGlobe.com acquired Tralliance Corporation on May 9, 2005. Tralliance maintained the .travel top-level domain, and by 2007 theglobe.com redirected visitors to Tralliance's website. TheGlobe.com sold Tralliance on September 29, 2008, retaining earn-out rights that became its principal remaining source of potential revenue. Following the sale, TheGlobe.com had no substantial operating business and functioned as a shell company. The company continued to trade under the TGLO symbol on the OTC Bulletin Board. Its filings described a highly constrained financial position, with liabilities substantially exceeding assets and limited management activity. On December 31, 2017, Delfin Midstream LLC acquired nearly 71 percent of the outstanding shares, reportedly as a possible vehicle for a future public-market transaction involving Delfin. In November 2022, TheGlobe.com stated that it expected to remain a public company for at least the following twelve months with financial support from Delfin. Frederick Jones has served as chief executive officer and chief financial officer since 2018. The company is therefore best understood not as an operating social-networking platform today, but as the corporate remnant of a pioneering internet brand and a potential public-company vehicle.
History
TheGlobe.com originated at Cornell University, where Stephan Paternot and Todd Krizelman encountered a basic chat room running on the university's computer network. They saw an opportunity to create a commercial online community and raised $15,000 during the 1994 Christmas break. The founders bought an Apple Internet Server and created WebGenesis, a programming operation used to develop their principal service. theGlobe.com went live on April 1, 1995, and attracted more than 44,000 visits in its first month. The founders recruited programmers from Cornell's computer-science department, and the company had 17 employees by its first anniversary. The service was an early social-networking platform, offering users a place to communicate, form communities, and interact around shared interests. Its growth coincided with increasing public access to the internet and rising investor enthusiasm for online businesses. In 1997, TheGlobe.com obtained $20 million in financing through Dancing Bear Investments. The funding supported expansion and helped establish the company as one of the better-known internet startups of the period. The company pursued diversification before its IPO. It acquired Computer Games magazine, happypuppy.com, and Chips and Bits, extending the business into gaming content and commerce. On November 13, 1998, it completed an IPO under the ticker TGLO on NASDAQ. The planned price was $9 per share, but the stock opened at $87, reached $97, and closed at $63.50. The company sold 3.1 million shares and raised $27.9 million. Its first-day increase of approximately 606 percent was then the largest first-day IPO gain on record. The offering temporarily gave the company a market capitalization above $840 million and made the founders paper millionaires. The IPO's spectacular performance also made TheGlobe.com a symbol of dot-com speculation. In 1999, a CNN report showing Paternot in a Manhattan nightclub, wearing shiny vinyl trousers and celebrating his newfound wealth, received extensive attention. The coverage helped create the popular image of the young internet executive as an embodiment of the era's excess. More importantly for the company, investors increasingly questioned the valuations and profitability prospects of internet startups. TheGlobe.com's stock collapsed from $97 to less than ten cents, and its market capitalization fell by more than 95 percent to approximately $4 million in 2001. Paternot and Krizelman were forced out of the company in 2000. The business retrenched sharply, closing its flagship site and dismissing about half of its workforce in August 2001. The original domain later displayed only an informational termination message, while the company retained selected partner relationships and publishing assets. Computer Games remained a significant PC-gaming publication, and the company expanded its publishing portfolio with Now Playing magazine in 2005 and MMO Games magazine in 2006. In 2003, TheGlobe.com attempted a return to consumer technology with GloPhone, a VoIP service comparable in concept to Skype. The service was associated with Friendster, but critical reception and sales were poor. Sprint Nextel filed a patent-infringement lawsuit relating to the VoIP business. The company also sent unsolicited messages to MySpace users, leading to litigation under the federal CAN-SPAM Act and a similar California law. A California court ruled against TheGlobe.com. The legal exposure, together with the failure of the operating businesses, contributed to the end of its publishing, retail, and telecommunications activities. GloPhone shut down on March 13, 2007. The acquisition of Tralliance Corporation on May 9, 2005, represented a shift toward internet-domain assets. Tralliance maintained the .travel top-level domain, and TheGlobe.com's website redirected to Tralliance by 2007. TheGlobe.com sold Tralliance on September 29, 2008, retaining earn-out rights that became its only identified potential future revenue source. After that sale, the company had no meaningful operating business or substantial assets and functioned as a shell company. Its public filings described borrowed office space, very limited executive involvement, and no employees beyond executive officers in the period covered by a 2011 annual report. The company remained quoted over the counter under TGLO. The 2011 annual report described assets of $6,426 and liabilities of approximately $3.2 million, while management warned that the Tralliance earn-out might not be sufficient to support the company and that additional capital or bankruptcy could become necessary. On December 31, 2017, Delfin Midstream LLC acquired nearly 71 percent of the outstanding shares, reportedly in connection with the possibility of taking Delfin public through a reverse merger. In November 2022, TheGlobe.com said it expected to continue as a public company for the next twelve months with Delfin funding. Frederick Jones has served as CEO and CFO since 2018. The brand's historical significance comes from its role as an early online community, its extraordinary 1998 IPO, and its subsequent transformation from a consumer internet operator into a dormant or shell-like public company.
- 2022
Company reports continued funding
[1]TheGlobe.com reported that Delfin funding was expected to support continued operation as a public company for the following twelve months.
- 2017
Delfin Midstream takes control
[1]Delfin Midstream LLC acquired nearly 71 percent of the outstanding shares.
- 2008
Tralliance sold
[1]TheGlobe.com sold Tralliance and retained earn-out rights, leaving the company without a substantial operating business.
- 2007
GloPhone discontinued
[1]GloPhone ceased operations on March 13.
- 2005
Tralliance acquired
[1]The company acquired Tralliance Corporation, associated with the .travel top-level domain.
- 2003
GloPhone launches
[1]TheGlobe.com introduced a VoIP telephone service called GloPhone.
- 2001
Flagship service closes
[1]The company closed its flagship website and reduced its workforce by approximately half.
- 2000
Founders leave management
[1]Paternot and Krizelman were forced out of the company as its business and market valuation deteriorated.
- 1998
Record-setting IPO
[1]TheGlobe.com went public on November 13 under TGLO, raising $27.9 million and recording a first-day share-price gain of approximately 606 percent.
- 1997
Major financing secured
[1]The company secured $20 million in financing through Dancing Bear Investments.
Products and positioning
Originally positioned as an early online social community where users could communicate and organize around shared interests, TheGlobe.com later pursued a broader internet-media and technology portfolio. Its late-1990s identity was closely associated with the speculative growth of consumer internet companies; after the collapse of its operating businesses, it became a shell company with residual corporate and earn-out interests.
Social networking and online community · 1995
theGlobe.com
The company's original flagship service was an early social-networking website launched in 1995. It built on online chat and community concepts, allowing users to communicate and organize around shared interests. The service was among the early commercial attempts to make online communities a central consumer internet product. It was closed during the company's retrenchment in 2001.
Gaming media
Computer Games magazine
Computer Games was a gaming publication acquired and operated by TheGlobe.com during its diversification into media. It covered computer games and became one of the better-known PC gaming magazines in the United States during the 2000s. Publication eventually ended as the company's operating businesses contracted.
VoIP telecommunications · 2003
GloPhone
GloPhone was an internet-based telephone service launched in 2003 and positioned against emerging VoIP offerings such as Skype. The service was associated with Friendster but received unfavorable reviews and achieved weak sales. A patent-infringement lawsuit by Sprint Nextel was also connected with the VoIP business. GloPhone ended operations on March 13, 2007.
Entertainment media · 2005
Now Playing magazine
Now Playing was a print publication added to TheGlobe.com's media portfolio in 2005. It focused on popular entertainment. The magazine was later discontinued as the company withdrew from its publishing operations.
Gaming media · 2006
MMO Games magazine
MMO Games was a magazine launched in 2006 covering massively multiplayer online games. It formed part of TheGlobe.com's effort to extend its gaming-publishing activities, but publication ended after the company’s operating businesses deteriorated.
Online gaming retail
Chips & Bits
Chips & Bits was an online store for computer and console gaming products acquired during TheGlobe.com's late-1990s expansion. The site later closed as the company retrenched.
Controversies
2011
Litigation related to SendTec sale
The company was sued in connection with the 2005 sale of a subsidiary called SendTec to RelationServ Media, which subsequently failed.
2006
CAN-SPAM and California anti-spam litigation
TheGlobe.com sent unsolicited messages to MySpace users and was sued under the federal CAN-SPAM Act and a similar California statute. A California court ruled against the company. The anticipated potential judgment contributed to the collapse of its remaining operating businesses.
2003
GloPhone patent litigation
Sprint Nextel sued TheGlobe.com in connection with alleged patent infringement involving the company's discontinued VoIP business.
2000
Shareholder and corporate litigation
The company became subject to six putative shareholder class-action lawsuits during the period of its post-IPO decline.
1999
Public scrutiny of executive lifestyle
A CNN report showing co-founder Stephan Paternot celebrating in a Manhattan nightclub drew widespread criticism and turned him into a symbol of the conspicuous consumption associated with the dot-com bubble. The episode damaged the company's public image, although it was part of broader scrutiny of internet-company executives rather than a finding of corporate wrongdoing.
Brand decisions
2017
Delfin Midstream takes a controlling stakeM&ABackground
TheGlobe.com remained a publicly traded corporate shell.
Action taken
Delfin Midstream LLC purchased nearly 71 percent of the company's outstanding shares, reportedly considering the company as a possible reverse-merger vehicle.
Aftermath
The company continued as a public entity with Delfin financial support, while its operating status remained limited.
2008
Sell Tralliance and retain earn-out rightsStrategyBackground
The company no longer maintained a substantial consumer internet or publishing operation.
Action taken
TheGlobe.com sold Tralliance while retaining earn-out rights from the transaction.
Aftermath
The company became a shell company whose potential future revenue depended principally on the Tralliance earn-out.
2005
Acquire Tralliance CorporationM&ABackground
TheGlobe.com was diversifying toward internet infrastructure and domain-related assets.
Action taken
The company acquired Tralliance, which maintained the .travel top-level domain.
Aftermath
Tralliance became the company's principal remaining operating asset before being sold in 2008.
2003
Enter internet telephony with GloPhoneProduct launchBackground
The company sought a new consumer technology growth area after closing its original community service.
Action taken
TheGlobe.com launched GloPhone, a VoIP service associated with Friendster.
Aftermath
Reviews were poor, sales were weak, and the service faced litigation before shutting down in 2007.
2001
Close the flagship social-networking serviceStrategyBackground
The company's market value and operating prospects deteriorated sharply after the dot-com downturn.
Action taken
TheGlobe.com closed its main website and laid off approximately half of its employees.
Aftermath
The company shifted away from its original social-networking identity and retained only selected publishing, partner, and technology activities.
1998
Pursue a public offering during the dot-com boomStrategyBackground
Rapid growth in consumer internet use and strong investor demand for internet companies created an opportunity to raise public capital.
Action taken
TheGlobe.com listed on NASDAQ under TGLO and issued 3.1 million shares.
Aftermath
The IPO raised $27.9 million and produced an approximately 606 percent first-day gain, but the valuation collapsed as investor confidence in unprofitable internet companies weakened.
IPO proceeds. $27.9 million (November 13, 1998)
Recent events
- 2022
TheGlobe.com reports continued public-company funding[1]
Other
The company reported that it expected to continue operating as a public company for the following twelve months with funding from Delfin.
- 2017
Delfin Midstream acquires a controlling stake[1]
M&A
Delfin Midstream LLC purchased nearly 71 percent of TheGlobe.com's outstanding shares, reportedly with the possibility of using the company as a public-market vehicle.
- 2007
GloPhone operations end[1]
Other
TheGlobe.com discontinued its GloPhone VoIP service on March 13, 2007.
- 2005
TheGlobe.com acquires Tralliance[1]
M&A
The company acquired Tralliance Corporation, which operated and maintained the .travel top-level domain.
- 2003
TheGlobe.com launches GloPhone[1]
Product launch
The company introduced GloPhone, an internet-based telephone service, but the product received poor reviews and achieved weak sales.
- 2001
TheGlobe.com retreats after the collapse of internet valuations[1]
Other
After its stock price plunged from a high of $97 to below ten cents, the company closed its flagship website and cut approximately half of its workforce.
- 1998
TheGlobe.com records one of the largest first-day IPO gains in history[1]
Product launch · Other
The company went public on November 13, 1998. Its stock opened far above the planned offering price and closed with a record-setting first-day increase, making the company a prominent dot-com-era IPO.
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