Yahoo to buy GeoCities
- — 29 January, 1999 21:49
Yahoo is buying GeoCities in a stock deal expected to be finalised in the second quarter of this year, it has been announced.
The dollar value of the acquisition was not estimated by the companies in a statement announcing the deal, which brings together two of the Internet's most well-known service sites. The agreement must pass federal regulatory scrutiny before being completed.
Yahoo will issue 0.3384 shares of its common stock for each share of GeoCities common stock and all outstanding GeoCities options will be converted into Yahoo options, the companies said. Yahoo expects to take a one-time charge related to acquisition expenses in the second quarter of this year.
GeoCities creates and hosts more than 3.5 million Web sites. The merged company expects to reach more than 58 per cent of those who use the Internet at home and work, making it the second largest Web network.