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News > Deals
Allen gives up his ticket
May 20, 1997: 10:29 a.m. ET

Paul Allen sells Ticketmaster shares for stake in Home Shopping Network
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NEW YORK (CNNfn) -- Paul G. Allen, co-founder of Microsoft, has reached an agreement to trade his 47.5 percent stake in Ticketmaster Group Inc. for shares in Home Shopping Network Inc.

The deal, valued at about $210 million, would essentially transfer Allen's stake in Ticketmaster to HSN. He will then have an 11 percent stake in the shopping network.

Under the agreement, HSN will issue approximately 7.2 million shares of HSN to Allen for about 12.3 million shares of Ticketmaster.

Home Shopping Network, whose chairman is Barry Diller, is planning to also acquire an additional 2.5 percent stake of Ticketmaster on the open market, giving it 50.1 percent of that company.

The two companies will continue to operate as separate entities.

Allen bought his Ticketmaster stock in 1993 and apparently feels that the company would be run better by Diller. Home Shopping Network is the nation's largest home shopping company and Diller has consistently increased his involvement with electronic commerce.

Diller said HSN was looking for greater extension of its electronic sales capabilities with the deal.

"As all forms of electronic commerce grow, the need for efficient transactional capability will exponentially grow and we intend to be an aggressive player in offering these services to the thousands of companies that will need them as they develop their own versions of interactive direct commerce," he said.

Ticketmaster recently came to legal blows with Microsoft, in which Allen still has a stake. The ticketing company filed suit against Microsoft's Seattle Sidewalk Web site, saying it linked to Ticketmaster's Web site without permission.

The discussions between Home Shopping Network and Ticketmaster appear to have begun prior to the legal dispute, however.

The boards of both companies approved the stock deal and completion of the transaction is expected in July of this year.

Ticketmaster is the exclusive ticket vendor for nearly two-thirds of the nation's venues and processes 1.8 billion ticket orders annually.Back to top


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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.