Specialty retailer SkyMall Inc., New York, will merge with entertainment media company Gemstar-TV Guide International Inc. in a cash-and-stock deal that will expand Gemstar-TV Guide’s television-based commerce business.
Gemstar-TV Guide will give shareholders of SkyMall, best known for its in-flight merchandise catalog, $1.50 in cash and 0.03759 shares of Gemstar-TV Guide common stock for each common SkyMall share, SkyMall said in a statement.
Gemstar TV Guide will own all outstanding shares of SkyMall upon completion of the deal, along with its assets and liabilities. The transaction is expected to be completed this summer, SkyMall said.
“SkyMall invested significantly in its e-commerce infrastructure and technology over the last three years,” Robert Worsley, SkyMall’s chairman, CEO and founder, said in a statement. “This platform will greatly help Gemstar-TV Guide in facilitating its television-based commerce.”
After the merger, Worsley will continue to serve as CEO for SkyMall and has entered into a long-term employment agreement. The transaction was unanimously approved by SkyMall’s board of directors.
SkyMall’s in-flight catalog can be found on more than 73% of all domestic airlines, reaching approximately 540 million domestic airline passengers annually. Through its skymall.com, inc. subsidiary, which operates the skymall.com Web site, SkyMall offers an expanded selection of products and services to online shoppers.
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