Business
Compaq buys Shopping.com
Shares of the online shopping site jump as computer maker seeks an online commerce play.
Compaq Computer Corp. said Monday it will buy Shopping.com for $220 million in cash. Shares of Shopping.com jumped 4 15/16 to 18 1/8 and Compaq gained 1 3/8 to 46 3/4.
The acquisition, which values Shopping.com at $19 a share, will bolster Compaq's AltaVista search service and sell some Compaq (NYSE:CPQ) PC's along the way. "Our intent is to make AltaVista the leading guide for both information and e-commerce on the Internet," said Rod Schrock, Compaq senior vice president, in a statement. Compaq (estimates) said it drove several million visits to the AltaVista Holiday shopping channel.
The board of directors of Shopping.com (OTC:IBUY) have approved the merger. Compaq said the transaction will close once it receives the issued and outstanding shares of Shopping.com.