The Timeshare Beat Home | Today's Headlines | Back to Previous Page
|
The Timeshare Beat Home | Today's Headlines | Back to Previous Page |
|
|
|
Press Release: IAC/InterActiveCorp
December 21, 2004
NEW YORK, NY -- IAC/InterActiveCorp (Nasdaq: IACI) Dec. 16 announced that it has exercised a warrant to purchase
approximately 17.4 million shares of high-vote ordinary stock of eLong, Inc. (Nasdaq: LONG), a leading online travel
service provider in China, for an estimated cash purchase price of approximately $108 million. The number of shares
and purchase price are subject to adjustment following exercise pursuant to the terms of the related warrant agreement.
IAC acquired the warrant in connection with its initial investment in eLong in August 2004, in which IAC invested
$58.7 million.
Following the completion of this purchase, which is expected to occur in January 2005, IAC will own approximately
52% of the outstanding capital stock of eLong (on a fully diluted basis), representing approximately 96% of the
total voting power of eLong. IAC's investment in eLong will continue to be managed by IAC Travel -- Asia Pacific,
a division of IAC Travel, and its financial results will be consolidated with those of IAC, as part of IAC Travel,
following the completion of the purchase.
As a result of this exercise, IAC has the right to designate four additional members for appointment to eLong's
Board of Directors. The four IAC designees appointed are: Mike Doyle, Chief Financial Officer, IAC Travel -- Asia
Pacific; Dermot Halpin, Managing Director, Expedia UK; Cameron Jones, Director, Hotels and Destination Services,
IAC Travel -- Asia Pacific; and Arthur Hoffman, Managing Director, Expedia Australia. Following these appointments,
six of the 11 members of eLong's Board of Directors will be IAC designees.
"eLong is leading a dramatic transformation in the way that travel is planned and purchased in China,"
said Barney Harford, President, IAC Travel -- Asia Pacific. "We are delighted to be deepening our relationship
with eLong, and we are excited by the opportunity this provides us to embrace the growth potential of the Chinese
travel market. China represents an $87 billion travel and tourism market opportunity today, forecast to grow to
more than $300 billion by 2014*."
About eLong, Inc.
Founded in 1999, eLong is an independent travel service company headquartered in Beijing with a national presence
across China. The Company uses web-based distribution technologies and a 24-hour nationwide call center to provide
consumers with consolidated travel information and the ability to access hotel reservations at discounted rates
at over 2,600 hotels in major cities across China. The Company also offers air ticketing and other travel related
services, such as rental cars, vacation packages and corporate travel services.
eLong operates the websites http://www.elong.com and http://www.elong.net.
About IAC/InterActiveCorp
IAC/InterActiveCorp (Nasdaq: IACI) operates leading and diversified businesses in sectors being transformed by
the internet, online and offline... our mission is to harness the power of interactivity to make daily life easier
and more productive for people all over the world. IAC consists of IAC Travel, which includes Expedia, Hotels.com,
Hotwire, Interval International, Classic Custom Vacations and Expedia Corporate Travel; HSN; Ticketmaster, which
oversees ReserveAmerica; Match.com; Precision Response Corporation; IAC Local and Media Services, which includes
Citysearch, Evite, Entertainment Publications, TripAdvisor and ServiceMagic; IAC Financial Services and Real Estate,
which includes LendingTree, RealEstate.com, GetSmart, and Domania; and IAC Interactive Development which includes
ZeroDegrees. http://iac.com
Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995
This press release contains "forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements include statements relating to IAC's and eLong's
anticipated financial performance, business prospects, new developments and similar matters, and/or statements
preceded by, followed by or that include the words "believes," "could," "expects,"
"anticipates," "estimates," "intends," "plans," "projects," "seeks,"
or similar expressions. These forward-looking statements are based on management's current expectations and assumptions,
which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict.
Actual results may differ materially from those suggested by the forward-looking statements due to a variety of
factors, including changes in business, political, and economic conditions due to the threat of future terrorist
activity, actions and initiatives by current and potential competitors, the effect of current and future legislation
or regulation, the ability to expand our reach into international markets, and certain other additional factors
described in IAC's and eLong's respective filings with the Securities and Exchange Commission. Other unknown or
unpredictable factors also could have material adverse effects on IAC's and eLong's future results, performance
or achievements. In light of these risks, uncertainties, assumptions and factors, the forward- looking events discussed
in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date stated, or if no date is stated, as of the date of this press release. IAC is not
under any obligation and does not intend to make publicly available any update or other revisions to any of the
forward-looking statements contained in this press release to reflect circumstances existing after the date of
this press release or to reflect the occurrence of future events even if experience or future events make it clear
that any expected results expressed or implied by those forward-looking statements will not be realized.
---------------------------------------------
Contact Information:
IAC Corporate Communications
Deborah Roth
(212) 314-7254
or
David Dennis
(425) 679-7430
IAC Investor Relations
Roger Clark / Lauren Porat
(212) 314-7400
Source: IAC/InterActiveCorp