Internet music distributor MP3.com Inc said Wednesday it has signed a definitive agreement to acquire privately-held seeUthere.com, an online event-planning web site, in an all-stock transaction valued at $208.3m. MP3.com says the acquisition will allow the 40,000 musical artists affiliated with the company to organize and produce their own events. SeeUthere.com is said to be the only online service with the ability to manage all aspects of an event including online ticketing, customized event web sites, automated invitation and RSVP management, and instant online reports that monitor ticket sales and revenue.
The transaction, which will be accounted for on a pooling-of-interests basis, is expected to close in the first quarter of 2000. Under the terms of the agreement, MP3.com will issue 5.95 million shares of common stock in exchange for all of the outstanding shares of seeUthere.com. Based on Tuesday’s closing price, the deal would have been valued at $150.2m, but jumped to well over $200m with Wednesday’s $9.75 rise in MP3.com’s share price to $35. Before yesterday, MP3.com’s shares had fallen roughly 10% since July’s initial public offering. In its most recent quarter, the company posted a loss of $19.9m on revenue of $4m. á
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