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Rest of Ticketmaster sold
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March 10, 1998: 2:02 p.m. ET
USA Networks acquires remaining 50.4 percent stake for $400 million
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NEW YORK (CNNfn) - USA Networks Inc. agreed in principle Tuesday to acquire the remaining 50.4 percent stake in Ticketmaster Group Inc. that it doesn't already own under revised terms from its original offer.
The deal, first announced last October, now values the remaining 13.5 million Ticketmaster shares at roughly $28.80 each, or nearly $400 million, based on the current price of USA Networks.
The revised offer is a 17 percent increase from the previous total value of $340 million and now reflects the stock's "fair value," said Fredric D. Rosen, president and chief executive of Ticketmaster.
Although the management structure hasn't yet been determined, Rosen confirmed that he will be departing after the transition is completed. He declined to comment on his future plans.
The higher price tag was helped by the recent rise in shares of USA Networks. Since the completion of its merger with the predecessor company, Home Shopping Network, in mid-February, USA Networks' stock has climbed almost 10 percent.
(Click to view recent stock activity)
In Nasdaq trading, USA Networks shares (USAI) were down 1-1/2 at 51-1/4 Tuesday. Ticketmaster's stock (TKTM) was 1-7/16 higher at 27-13/16.
Under the new agreement, Ticketmaster shareholders will receive 0.563 of a USA Networks share for each Ticketmaster share in a tax-free transaction.
Under a previous plan, Home Shopping's Chairman Barry Diller had offered 0.506 of an HSN share for each Ticketmaster share. However, that offer was collared between $22.264 and $25.30 a share.
Diller first acquired the 49.6 percent stake in Ticketmaster last May from Microsoft co-founder Paul Allen. That deal gave Diller and other HSN executives seats on Ticketmaster's board of directors.
The latest agreement is subject to a definitive agreement, which will reflect the new corporate structure. The merger also is subject to approval by stockholders of Ticketmaster.
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