Another Article From the WS JOURNAL>>
Microsoft to gain stake in Ticketmaster Online-WSJ
NEW YORK, July 19 (Reuters) - Microsoft Corp < >MSFT.O>. is close to a deal to trade major parts of its Sidewalk service to rival TicketMaster Online CitySearch Inc. for a 9 percent stake in that company, the Wall Street Journal reported. Citing people familiar with the matter, the paper said the deal has been in the works for several months and would be valued at about $225 million. The pact could be announced as early as Monday, but executives for both companies were negotiating final details Sunday, these people said. Spokesmen for both Microsoft and TicketMaster Online CitySearch declined to comment, the Journal said. People familiar with the matter said the decision to sell the bulk of Sidewalk, a city guide on the Internet that spans the country, was inspired by an analysis of Microsoft's online properties prepared last year by its investment bankers. If completed, the deal is expected to give Microsoft a stake of 9 percent, and rights to acquire as much as 15 percent. TicketMaster Online CitySearch had a market value of about $2.5 billion as of Friday. These people said an agreement would involve selling the Sidewalk brand name, arts-and-entertainment content and rights to hire its staff of 90 editors and writers in 10 cities nationwide, but would not include its technical or advertising sales staff. Microsoft has been moving Sidewalk toward providing more local interactive 'yellow pages' and buyer's guides in order to increase electronic commerce, services which will now be integrated into the company's wider Microsoft Network portal and not be part of the deal. The agreement would also give the CitySearch Web guide widespread distribution on a number of popular Microsoft Web sites and its WebTV service. It would give CitySearch prominent positioning for its personals and arts-and-entertainment and local programming, the Journal reported. In turn, Microsoft would be able to market Internet software to thousands of small businesses that are merchants on CitySearch's system. The deal is expected to combine Sidewalk and CitySearch operations, which overlap in major markets such as San Francisco and New York, but it isn't clear if CitySearch will keep the Sidewalk name or locations, according to the paper. |
