This Date In History
May 2, 2002
May 1, 2000: Homestore, AOL Announce $200 Million Marketing Partnership
Inman News Features
Two years ago today, America Online (NYSE: AOL) announced it was partnering with Homestore.com (Nasdaq: HOMS) in a five-year joint marketing effort that the two companies said would be worth more than $200 million.
Under the agreement, Homestore.com reportedly would become the exclusive provider of home-related information for the 22 million subscribers of the nation?s largest Internet access provider. The partnership called for a "home-related channel" on AOL, which would offer information about real estate, home services and relocation.
The partnership would extend to such AOL-owned brands as AOL, AOL.COM, CompuServe, Netscape Netcenter and Digital City.
As a part of the deal, Dulles, Va.-based America Online would receive 3.9 million Homestore.com shares and $20 million in cash. In exchange, Thousand Oaks, Calif.-based Homestore.com reportedly was required to meet unnamed performance targets.
Homestore in October filed an arbitration action against America Online, alleging that the company has breached obligations relating primarily to Internet traffic commitments under the agreement and seeking damages, equitable relief and other remedies.
Copyright: Inman News Service