graphic
News > Deals
Ticketmaster goes local
August 13, 1998: 10:34 a.m. ET

Online unit to merge with Web-based local guide CitySearch; IPO delayed
graphic
graphic graphic
graphic
NEW YORK (CNNfn) - Ticketmaster Corp. and CitySearch Inc. said Thursday they have agreed to a deal under which CitySearch will merge with Ticketmaster Online.
     The companies said the new unit, to be called Ticketmaster Online-CitySearch, will provide local content and event-ticketing services over the Internet. Ticketmaster is a division of USA Networks Inc. (USAI).
     The companies did not disclose financial terms.
     CitySearch produces local guides on the Web for 13 major cities. The company said it has postponed its plans for an initial public offering in favor of the merger. The company was expected to sell about 4 million shares, or 20 a percent stake, this week in an IPO valued at $52 million.
     The combined company said it plans to file for an IPO upon completion of the merger, which is expected in the third quarter.
     USA Networks said it will invest $50 million in the new company through a convertible note.
     USA Networks, which currently owns 12.9 percent of CitySearch, will own 62.5 percent of the combined company. CitySearch shareholders will own the remaining 37.5 percent. Charles Conn, CitySearch chief executive officer, will retain his title at the combined company; Alan Citron, USA Networks Interactive president, will become chairman.
     CitySearch Ticketmaster and CitySearch said they will retain their individual presences on the Internet. The combination will allow users of both sites to "learn about an event and purchase tickets to it," the companies said in a statement.
     USA Networks (USAI) shares gained 1-13/16 to 29-1/4 in early trading. Back to top

  RELATED STORIES

N2K, Ticketmaster music marketing accord - April 28, 1998

Rest of Ticketmaster sold - March 10, 1998

  RELATED SITES

Ticketmaster Online

CitySearch


Note: Pages will open in a new browser window
External sites are not endorsed by CNNmoney




graphic