DALLAS -- USA Networks Interactive plans to acquire Hotel
Reservation Network, which sells discount hotel accommodations on
the Web and via a toll-free number
USA Networks Interactive, a unit of USA Networks, a media and
electronics company, will purchase HRN and make it an operating
unit, according to the two companies.
HRN cofounders Robert Diener and David Litman will remain
president and chief executive officer, respectively. The terms of
the transaction were not disclosed, but the companies said the deal
is subject to regulatory approvals and is expected to close in
June.
USA Networks Interactive's holdings include Internet Shopping
Network, whose primary service is First Auction, and a controlling
interest in Ticketmaster Online-CitySearch, which provides local
content and live-event ticketing on the Web.
USA Networks' other assets include The SciFi Channel; Studios
USA, which makes television movies and miniseries; USA
Broadcasting; Home Shopping Network, and Ticketmaster.
Barry Diller, chairman and chief executive officer of USA
Networks, said in a prepared statement, "Not unlike many
interactive companies, HRN has had zooming growth since it offered
Internet services in 1995. Unlike many others, it has substantial
revenues and profits."
Diener, HRN's president, said his company's sales volume for
this year is projected at about $125 million, but he declined to
get into specifics about profits and the company's bottom line.
HRN books 1.4 million room nights a year, with about 1 million
of those booked on the Web, Diener said. It sells rooms in 600
hotels in 34 cities, and that will be expanded to 1,000 hotels in
44 cities by the end of the year, Diener said.
HRN operates on the Web at www.180096hotels.com and www.hoteldiscount.com, and via the toll-free number,
(800) 96-HOTEL.
In addition to its own Web presence, HRN has partnered in
affiliate programs with major on-line travel services; traditional
travel agencies with their own Web sites, and convention and
visitors bureaus.
HRN said it has partnered with more than 1,000 travel-related
sites that use its booking engine on a revenue-share basis through
its affiliate program.
Diener said the acquisition will enable HRN to "bring everything
to the masses," thanks to cross-promotional opportunities between
the hotel reservations service and USA Networks' Internet and
television properties.