USA Networks, Expedia Working To Complete Deal

Baldwin Louie — Mon, 17 Sep 2001 18:00:00 -0400

NEW YORK -(Dow Jones)- USA Networks Inc. (USAI) and Expedia Inc. (EXPE) are "continuing to work together to complete" their planned transaction, an Expedia spokeswoman told Dow Jones Newswires Monday.

USA Networks announced plans in July to buy a controlling stake in Expedia, an online travel concern, from Microsoft Corp. (MSFT).

Since last week's terrorist attack in New York and Washington. D.C., however, speculation has swirled that the deal may falter given the likely blow to the travel industry, which could hinder the transaction's strategic rational.

Suzi LeVine, director of product marketing for Expedia, declined to say
whether the companies had been in touch since Tuesday's tragedy.

Though no specific date had been set for the merger's close, LeVine said the companies were hoping to complete the deal by the end of this year.

She declined to say whether that was still the case.

Another spokeswoman said the company may have further comments later Monday.

USA Networks was recently down 14%, changing hands recently at $19.85 a share in heavy volume in the first trading session since Tuesday's attack. Expedia has slid 29.1% to $25.69 a share, also in heavy volume.

A spokesperson for USA Networks was not immediately available for comment. A spokeswoman for Microsoft also was not immediately available to comment.

Terms of USA's offer for Expedia were complex and subject to varying
valuations. USA is offering a mix of its common shares, preferred stock and warrants.

The deal had a value of about $1.3 billion when it was announced, not
including the warrants. The deal's full potential value was estimated at roughly $39 to $44 a share when it was announced.

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USA Networks, Expedia Working To Complete Deal