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AOL, Homestore team
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May 1, 2000: 7:28 a.m. ET
ISP to get 3.9M shares of real estate site's stock in 5-year, $200M agreement
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NEW YORK (CNNfn) - America Online Inc. and real estate information provider Homestore.com announced Monday that they have agreed on a five-year content, e-commerce and distribution alliance valued at more than $200 million.
In return for giving the home buying, renting and improvement site access to AOL's 22 million subscribers, Homestore.com (HOMS: Research, Estimates) will give AOL about 3.9 million shares of common stock, a $90 million line of credit if Homestock stock doesn't reach certain performance targets, and $20 million in cash.
 The agreement calls for AOL (AOL: Research, Estimates) to establish a new home-purchasing channel featuring information from Homestore. The channel will provide information on finding a new home or apartment, moving, relocating, and provide tools and services for the user.
 "Looking for a place to live and moving can be complicated and stressful, and we hope that by bringing Homestore.com's selection of tools and resources to AOL, we can make the process easier and more convenient," said Bob Pittman, AOL's president and CEO.
The AOL-Homestore team up will make Homestore the exclusive provider of real estate and moving-related services and information across AOL, AOL.com, CompuServe, Netscape Netcenter, and Digital City.
AOL, which is in the process of acquiring CNNfn parent Time Warner, was unchanged Friday at 60. Homestore rose 1-5/8 to 18-1/4, 87 percent below its 52-week high of 138. 
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