424B3 1 f99310e424b3.htm PROSPECTUS SUPPLEMENT NO. 3 e424b3
 

Filed pursuant to Rule 424(b)(3)
Registration No. 333-108932

PROSPECTUS SUPPLEMENT NO. 3
(To Prospectus dated November 21, 2003)

$115,000,000

(ASK JEEVES LOGO)

Zero Coupon Convertible Subordinated Notes Due June 1, 2008


     This prospectus supplement amends and supplements the prospectus dated November 21, 2003, as supplemented by Prospectus Supplement No. 1 dated March 19, 2004 and Prospectus Supplement No. 2 dated March 30, 2004 relating to Ask Jeeves, Inc.’s Zero Coupon Convertible Subordinated Notes Due June 1, 2008 and the shares of its common stock issuable upon conversion of the notes.

     This prospectus supplement is incorporated by reference into, and should be read in conjunction with, the prospectus dated November 21, 2003, as supplemented. This prospectus supplement is not complete without, and may not be delivered or utilized except in connection with, the prospectus dated November 21, 2003, as supplemented.

     The notes are not listed on any national securities exchange or on Nasdaq. Our common stock is quoted on The Nasdaq National Market under the symbol “ASKJ.” The last reported sale price of our common stock on May 21, 2004 was $35.94 per share.


Investing in the notes and/or the shares involves risks.
See “Risk Factors” beginning on page 7 of the prospectus dated November 21, 2003
to read about factors you should consider before buying the notes.


     Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

     This prospectus supplement amends and replaces the second paragraph and the table under the heading “Selling Securityholders” beginning on page 46 of the prospectus dated November 21, 2003 with the information in the following paragraph and table and supercedes all previously filed prospectus supplements.


The date of this prospectus supplement is May 24, 2004.

 


 

SELLING SECURITYHOLDERS

     The table below sets forth the name of each selling securityholder, the principal amount of notes, as of May 20, 2004, that each selling securityholder may offer pursuant to this prospectus and the number of shares of common stock into which the notes are convertible. Unless set forth below, none of the selling securityholders has, or within the past three years has had, any material relationship with us or any of our predecessors or affiliates.

                                                 
    Aggregate                       Beneficial Ownership
    Principal                       After Offering
    Amount of                   Number of  
    Notes Owned   Percentage   Number of   Shares of           Percentage
    Before   of Notes   Shares of   Common   Number of   of
    Offering   Outstanding   Common Stock   Stock   Shares of   Shares of
    and That   Before   Held Before   Offered   Common   Common
Selling Securityholder
  May Be Sold
  Offering
  Offering (1)
  for Sale (1)(2)
  Stock (3)
  Stock
Alexandra Global Master Fund, Ltd
  $ 9,000,000       7.83 %     532,544       532,544             *  
Arbitex Master Fund, L.P. (4)
    1,000,000       *       59,171       59,171             *  
Arkansas Teacher Retirement Fund
    2,535,000       2.20 %     150,000       150,000             *  
Baptist Health of South Florida
    352,000       *       20,828       20,828             *  
BNP Paribas Equity Strategies, SNC (4)
    1,078,000       *       68,332       63,786       4,546       *  
CALAMOS® Convertible Growth and Income Fund – CALAMOS® Investment Trust
    4,000,000       3.48 %     236,686       236,686             *  
Citadel Equity Fund Ltd. (4)(6)
    39,030,000       33.94 %     2,309,467       2,309,467             *  
Citadel Jackson Investment Fund Ltd. (4)
    5,070,000       4.41 %     300,000       300,000             *  
CNH CA Master Account, L.P.
    4,500,000       3.91 %     266,272       266,272             *  
CooperNeff Convertible Strategies (Cayman) Master
Fund, LP
    1,065,000       *       63,017       63,017             *  
Credit Suisse First Boston LLC (5)(7)
    5,203,000       4.52 %     307,869       307,869             *  
CRT Capital Group LLC (5)
    1,500,000       1.30 %     207,100 (8)     88,757       118,343 (8)     *  
DBAG London (4)
    1,000,000       *       59,171       59,171             *  
Engineers Joint Pension Fund
    240,000       *       14,201       14,201             *  
Geode U.S. Convertible Arbitrage Fund, a series of Geode Investors, LLC
    2,000,000       1.74 %     118,343       118,343             *  
MSD TCB, L.P. (9)
    11,090,000       9.64 %     656,213       656,213             *  
Nicholas Applegate Convertible Mutual Fund
    430,000       *       25,443       25,443             *  
Polaris Vega Fund L.P.
    1,500,000       1.30 %     88,757       88,757             *  
Polygon Global Opportunities Master Fund
    2,000,000       1.74 %     118,343       118,343             *  
Radcliffe SPC, Ltd. for and on behalf of the Class A Convertible Crossover Segregated Portfolio
    2,600,000       2.26 %     153,846       153,846             *  
Ronin Capital, LLC (5)
    500,000       *       29,585       29,585             *  
San Diego City Retirement
    515,000       *       30,473       30,473             *  
San Diego County Convertible
    1,090,000       *       64,497       64,497             *  

S-2


 

                                                 
    Aggregate                       Beneficial Ownership
    Principal                       After Offering
    Amount of                   Number of  
    Notes Owned   Percentage   Number of   Shares of           Percentage
    Before   of Notes   Shares of   Common   Number of   of
    Offering   Outstanding   Common Stock   Stock   Shares of   Shares of
    and That   Before   Held Before   Offered   Common   Common
Selling Securityholder
  May Be Sold
  Offering
  Offering (1)
  for Sale (1)(2)
  Stock (3)
  Stock
Satellite Convertible Arbitrage Master Fund LLC
    5,500,000       4.78 %     325,443       325,443             *  
Singlehedge U.S. Convertible Arbitrage Fund
    205,000       *       12,130       12,130             *  
Sturgeon Limited
    152,000       *       8,994       8,994             *  
Sunrise Partners Limited Partnership (4)
    5,500,000       4.78 %     325,443       325,443             *  
Topanga XI (4)
    954,000       *       56,449       56,449             *  
UBS O’Connor LLC f/b/o O’Connor Global Convertible Arbitrage Master Ltd.
    1,500,000       1.30 %     88,757       88,757             *  
Wake Forest University
    285,000       *       16,863       16,863             *  
Wolverine Asset Management, LLC (4)
    2,046,000       1.78 %     121,065       121,065             *  
WPG MSA Convertible Arbitrage Fund (4)
    200,000       *       11,834       11,834             *  
WPG Convertible Arbitrage Overseas Master Fund (4)
    800,000       *       47,337       47,337             *  
Wyoming State Treasurer
    560,000       *       33,136       33,136             *  
 
   
 
     
 
     
 
     
 
     
 
     
 
 
Totals
  $ 115,000,000       100.00 %     6,927,622       6,804,733       122,289       *  
 
   
 
     
 
     
 
     
 
     
 
     
 
 


*   Less than one percent (1%).
 
(1)   Assumes conversion of all of the holder’s notes based upon the initial conversion price of $16.90 per share of common stock. This is equivalent to a conversion rate of approximately 59.1716 shares per $1,000 principal amount of notes. This conversion rate is subject to adjustment as described in the accompanying prospectus under “Description of the Notes—Conversion of Notes.” As a result, the number of shares of common stock issuable upon conversion of the notes may increase in the future. In addition, the number of shares of common stock listed for each holder does not include fractional shares. Holders will receive a cash payment for any fractional share resulting from conversion of the notes, as described in the accompanying prospectus under “Description of Notes—Conversion of Notes.”
 
(2)   Except as noted, the shares of common stock that may be sold upon conversion of the notes by any selling securityholder will not represent 1% or more of our outstanding common stock.
 
(3)   Assumes all of the notes and shares of common stock issuable upon their conversion are sold in the offering.
 
(4)   This selling securityholder has identified itself as an affiliate of a broker-dealer. Please see “Plan of Distribution” in the accompanying prospectus for required disclosure regarding these selling securityholders.
 
(5)   This selling securityholder has identified itself as a registered broker-dealer and, accordingly, an underwriter. Please see “Plan of Distribution” in the accompanying prospectus for required disclosure regarding these selling securityholders.

S-3


 

(6)   The shares of common stock that may be sold upon conversion of notes by this selling securityholder will represent 3.90% of our outstanding common stock. This percentage is calculated based on Rule 13d-3(d)(i) of the Exchange Act, using 56,922,719 shares of common stock outstanding as of May 20, 2004. In calculating this amount, we treated as outstanding the number of shares of common stock issuable upon conversion of all of this selling securityholder’s notes, but we did not assume conversion of any other selling securityholder’s notes.
 
(7)   The selling securityholder has identified itself as having a material relationship with Ask Jeeves, Inc. during the past three years. Specifically, this selling securityholder was the initial purchaser of the notes in our offering of the notes pursuant to Rule 144A.
 
(8)   Beneficial ownership shown in the table includes shares of common stock which the listed person may acquire upon conversion of notes purchased by the listed person in this offering subsequent to the effective date but prior to the date as of which information is given in the table.
 
(9)   The shares of common stock that may be sold upon conversion of notes by this selling securityholder will represent 1.14% of our outstanding common stock. This percentage is calculated based on Rule 13d-3(d)(i) of the Exchange Act, using 56,922,719 shares of common stock outstanding as of May 20, 2004. In calculating this amount, we treated as outstanding the number of shares of common stock issuable upon conversion of all of this selling securityholder’s notes, but we did not assume conversion of any other selling securityholder’s notes.

S-4