Diller takes 49.6% stake in Ticketmaster

Barry Diller’s HSN Inc. finalized a deal to acquire 49.6% of Ticketmaster as the $215 million stock swap deal officially closed late Thursday. Diller assumed billionaire Paul Allen’s stake in the nation’s largest ticketer in exchange for Allen getting an 11% stake in HSN, parent company of the Home Shoppingt Network.

The pact, which was announced May 20, drew immediate fire from some investors and Wall Street analysts who asserted Ticketmaster sold control in the company without a premium being paid to stockholders (Daily Variety, May 20).

Since the proposed deal was announced, Ticketmaster stock has climbed $3 per share. The stock closed at $17.50 Thursday.

Allen swapped 12.3 million common shares of Ticketmaster stock for 7.2 million shares of HSN, and will take a seat on HSN’s board of directors alongside Ticketmaster prexy-CEO Fred Rosen and Allen’s rep, William Savoy, as part of the transaction.

Diller will get a seat on Ticketmaster’s board along with James Held, Home Shopping Network prexy-CEO and HSN vice chairman.

Also joining the Ticketmaster board is Jonathan Dolgen, chairman of Viacom Entertainment Group, and Peter Barton of Barton and Associates. The pair will serve as outside directors.

The deal teams HSN, which typically attracts an older female demographic to a shopping channel that reaches 70 million homes, with Ticketmaster, whose demographics tend to skew much younger.

It is expected that the two firms will utilize their combined resources, such as phone banks and processing systems, to offer cross-promotions and further exploit its audience’s desire for entertainment-related merchandise.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading