High-speed Internet provider [email protected] announced today that it will pump another $40 million (US $) into Tickets.com Inc. — raising its stake in the online ticket seller to $55 million.
[email protected]’s latest investment in the Newport Beach, California-based company is a strong vote of confidence that the Tickets.com’s thriving business of selling tickets to concerts and sporting events, through its Web site and 1-800-TICKETS phone number, will continue to flourish. Tickets.com filed to sell its shares to the public on June 2nd.
The Redwood City, California-based company’s investment in Tickets.com is its single largest investment to date, according to [email protected] officials. [email protected] has also invested in companies such as General Magic Inc. and the combined company of Healtheon Corp. and WebMD — after they merged.
Other investors in Tickets.com include Cox Interactive Media, with a $30 million stake. As a result, Tickets.com will spend $13.5 million over three years to buy promotions in various Cox media properties such as newspapers, radio and Cable TV. In addition, Tickets.com will pay $25 million over three years to [email protected] as part of an extended content and distribution agreement. [email protected] plans to integrate Tickets.com’s local content and tickets for sale on its Excite Web site and its At Home Internet Site.
About The Companies
[email protected] was formed when At Home bought Excite. It uses cable TV systems to provide high-speed Internet access to consumers and businesses — serving about 500,000 customers in the U.S. and Canada. It also operates the Excite Internet portal, which is visited by more than 15 million users monthly. The Web site features search engines, online shopping and free voice and e-mail. AT&T owns 26 percent of the company but has a 58 percent voting interest.
Earlier this month, rumors were swirling that Yahoo! was about to buy [email protected] in a $17 billion-plus mega-acquisiton, but the company denied it. Last year [email protected], which employs about 570 workers, lost $144 million on revenue of $48 million.
Tickets.com’s online service sells tickets for events held at more that 3,800 venues. Its Web site also features an auction service bringing individual ticket sellers and buyers together. In addition, Tickets.com markets ticketing software. Founded in 1995, it is one of the startups backed by idealab! Other investors in Tickets.com include General Atlantic Partners, R4 Holdings and pop star Michael Jackson’s Jackson International.
Last year the company, which employs 723 workers, lost $34.9 million on revenue of $29.5 million.