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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 (Nasdaq: HOMS) in a five-year joint marketing effort that the two companies said would be worth more than $200 million.

Under the agreement, 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 shares and $20 million in cash. In exchange, Thousand Oaks, Calif.-based 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

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