CitySearch, Zip2 call off merger agreement

The companies cited differences in technologies, product strategies and business models discovered in the course of merger negotiations.

Both parties recognized that the merger would not be in the best interests of either company, the companies said in a statement.

"It really is as simple as two companies that began to integrate, and then discovered through the integration process that there's some pretty significant differences in how we think about technology, and building products," said Charles Conn, co-founder and CEO of CitySearch. "It's important to us that we didn't risk the company's future by trying to push those differences under the rug."

The companies said they may continue to work together in the future.

The companies originally announced April 6 that they would merge to form a company called CitySearch, which would be based in Zip2's headquarters in Mountain View, Calif.

Reach would have been extensive
The combined company would have served 175 cities worldwide, including 27 of the top 30 U.S. cities. It would have had more than 200 newspaper, television and radio partners and more than 700 employees.

CitySearch is based in Pasadena, Calif.

Both companies, which are privately held, work with local media sources such as newspapers and local businesses to create city guides and sites for other companies. CitySearch's series of guides is branded with the CitySearch name, while Zip2 focuses on underlying technology.