USA Interactive To Buy The Rest Of Hotels.com - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

USA Interactive To Buy The Rest Of Hotels.com

The company will buy the 32% that it doesn't already own in a stock deal valued at more than $1 billion

NEW YORK (AP) -- USA Interactive said Thursday it has agreed to acquire the shares of Hotels.com that it doesn't already own in a stock deal valued at about $1.1 billion.

USA Interactive said Hotels.com shareholders will receive 2.4 USA shares for each Hotels.com share. This values Hotels.com at about $60.24 a share, based on USA's Wednesday closing price, a premium of about 13 percent to Hotels.com's closing share price of $53.30 Wednesday on the Nasdaq Stock Market.

Shares of Dallas-based online hotel-room discounter Hotels.com were at $60.80 in early trading Thursday, up $7.50, or 14.1 percent, on heavy volume.

Shares of USA Interactive, a New York-based company which owns the Home Shopping Network and Ticketmaster, were at $25.90 early Thursday, up 80 cents, or 3.2 percent, on the Nasdaq.

USA Interactive currently owns about 68 percent of Hotels.com's outstanding stock, and controls about 97 percent of combined voting power. USA Interactive will issue about 45.2 million diluted shares to Hotels.com shareholders.

The transaction won't change Hotels.com's current operating structure, as it plans to continue to operate the unit and travel-booking site Expedia separately. However, USA Interactive said it will continue to review strategy over time.

An independent special committee of Hotels.com's board recommended the deal, and Hotels.com's board has approved the agreement.

Hotels.com has about 1,200 employees. Current chairman and chief executive David Litman and president Bob Diener will continue in their positions. USA Interactive's chairman and chief executive is Barry Diller, a media pioneer who helped launch the Fox Television network for News Corp.

The transaction is expected to close this summer. USA Interactive expects the acquisition to add slightly to 2003 adjusted earnings per share.

USA Interactive originally offered to buy Hotels.com, along with Expedia and ticketing giant Ticketmaster, in June 2002. But it tabled the offer after investor opposition.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
Slideshows
10 Ways to Transition Traditional IT Talent to Cloud Talent
Lisa Morgan, Freelance Writer,  11/23/2020
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Can Low Code Measure Up to Tomorrow's Programming Demands?
Joao-Pierre S. Ruth, Senior Writer,  11/16/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll