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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (31169)	10/26/1999 9:33:00 PM
From: taxman	Read Replies (2) \| Respond to of 74651

Washington, Oct. 26 (Bloomberg) -- Expedia Inc., the online travel bookings service owned by Microsoft Corp., said it hopes to sell a 13.6 percent stake to new investors through its initial public offering. The stock sale will consist of 5.2 million common shares ranging in price from $10 to $12 apiece, according to an amended registration statement filed with the Securities and Exchange Commission. Expedia, based in Redmond, Washington, didn't disclose the number of shares it hoped to sell or their estimated price when it first filed to go public last month. The Expedia stock sale is part of Microsoft's plan to take advantage of soaring stock prices for Internet-related companies. Earlier this year, Microsoft said it was considering issuing a tracking stock that would reflect all of its Internet activities, and its plans to sell a stake in Expedia have fueled expectations of more public sales. Expedia will have 38.2 million shares outstanding after the IPO. Assuming a share price of $11, at the middle of the range, Expedia would have an implied market value of $420 million. Microsoft will have an 86.4 percent stake after the IPO. In the filing, Microsoft said it will continue to include Expedia's financial results in its consolidated federal tax returns as long as it owns at least 80 percent of Expedia shares. Microsoft said it will include the financial data in its consolidated financial reports as long is it maintains control of Expedia's outstanding common stock, the filing said. The stock sale will raise $51.4 million after expenses. Expedia said it plans to use the proceeds for working capital and general corporate purposes, in particular to increase its spending on brand development, sales and marketing and strategic relationships. The Expedia Web site lets travelers make reservations online. Its partners include AMR Corp.'s American Airlines. ¸1999 Bloomberg L.P. regards