USA Networks Agrees to Buy Majority Stake in Styleclick.com
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NEW YORK — USA Networks Inc., owner of the Home Shopping Network cable-television channel, said it agreed to buy a majority stake in online retailer Styleclick.com Inc. for about $379.2 million to bolster its Internet shopping business.
USA Networks will combine its Internet Shopping Network to form a new company called Styleclick Inc. It will receive about 23.1 million shares, or 75% of Styleclick, and contribute about $40 million in cash and $10 million in advertising. It will lend the venture about $10 million.
The owner of the Sci-Fi Channel and USA Network channels is building its electronic-commerce business under Chief Executive Barry Diller. The company had $5.6 million in electronic-commerce revenue in the third quarter.
USA Networks’s shares rose $3.44 to close at $53.94 on Nasdaq.
Styleclick.com sells clothes, shoes and fragrances from its Web site. The Culver City-based company lost $4.67 million on revenue of $786,546 in the third quarter.
Styleclick.com’s shares fell $3.25 to close at $14.25 on Nasdaq.
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