USA Networks Inc., Los Angeles, has agreed to acquire a controlling interest in the online travel agency, Expedia Inc. That, along with two other developments its acquisition of National Leisure Group Inc., and its launch of the USA Travel Channel on cable, will make the network the leader in interactive travel, generating about $4 billion in annual gross travel bookings.
Under the terms of the Expedia agreement, USA has agreed to purchase up to 37.5 million shares, approximately 75% of the currently outstanding shares. Expedia shareholders will have the option to elect to exchange in a tax-free merger transaction each Expedia share for $17.50 in USA Common Stock.
Expedia.com, now the seventh-largest travel agency in the United States online or offline, launched Expedia.comin1996. Expedia Inc. became a public company in 1999.Before its IPO, Expedia Inc. was a wholly owned subsidiary of Microsoft.
Barry Diller will become the new chairman of Expedia. Richard Barton will continue in his role as president and CEO.
National Leisure Group Inc. (NLG) is a provider of vacation packages and cruises though its multi-channel marketing activities. Terms of the transaction were not disclosed. Aaron Gowell will continue as president of that agency.
The SA Travel Channel is a digital television commerce channel expected to launch this year. It will be produced by the Home Shopping Network and will be supported by the entertainment and interactive groups at USA Networks Inc.
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