|
Ticketmaster auction site
|
 |
January 11, 1999: 3:47 p.m. ET
Ticketmaster-CitySearch acquires CityAuction to offer local e-commerce
|
NEW YORK (CNNfn) - Ticketmaster Online-CitySearch Inc. Monday agreed to acquire privately-held online auction community CityAuction Inc. in a deal worth approximately $45 million.
Ticketmaster-CitySearch, a provider of local city guides and live-event ticketing on the Internet, said the deal will allow it to offer auction services to its local Web customers.
Ticketmaster-CitySearch will exchange 800,000 Class B shares for all CityAuction outstanding stock. Based on Monday's opening price of Ticketmaster-CitySearch shares, the deal is valued at approximately $45 million.
CityAuction sells antiques, collectibles and computers locally and around the world.
"CitySearch is committed to meeting the information and transaction needs of online consumers within our local communities," said Charles Conn, Ticketmaster Online-CitySearch chief executive officer. "The ability for CitySearch users to participate in auctions both regionally and locally provides a substantial new opportunity for the company."
News of the deal sent Ticketmaster-CitySearch shares up 8-3/8 to 65-1/4 in late trading.
The deal affords Ticketmaster-CitySearch the opportunity to ride the recent wave of success enjoyed by online auction sites, which have become the darlings of investors with appetites for Internet stocks.
Shares of eBay Inc. (EBAY), uBid Inc. (UBID) and Onsale Inc. (ONSL) all have climbed in recent weeks.
The deal also adds to USA Networks Inc. 's (USAI) holdings in online goods trading. USA Networks, which holds a 62.5-percent stake in Ticketmaster-CitySearch, also runs the Internet Shopping Network.
The CityAuction acquisition is in line with USA Networks Chairman and Chief Executive Barry Diller's vision of joining together local information and local commerce.
"I believe local auctions will be especially effective in matching buyers with sellers, and believe combining CityAuction with Ticketmaster Online-CitySearch is simply a natural," Diller said. 
|
|
|
|
|
 |
|
