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AOL to acquire MapQuest
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December 22, 1999: 2:03 p.m. ET
$1.1B stock deal for online directions company to expand e-commerce
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NEW YORK (CNNfn) - America Online Inc. agreed Wednesday to acquire interactive map and driving directions firm MapQuest.com Inc. in a stock deal worth roughly $1.1 billion.
Investors reacted by sending shares of Mapquest down sharply. By midday the stock slumped 23 percent, off 7-5/8 to 24-7/8. AOL fared better, suffering only a 1-7/16 loss to 83-9/16.
Terms of the deal call for MapQuest.com shareholders to receive 0.31558 share of AOL common stock for each share of MapQuest stock. The stock-for-stock transaction is expected to close in the spring of 2000, subject to shareholder and regulatory approval.
AOL (AOL) said the MapQuest (MQST) purchase will boost its e-commerce and advertising reach to local regions on AOL's Digital City, the company’s local content network. By offering users maps and driving directions, AOL expects an increase in its entertainment, dining and shopping areas, including its MovieFone film listings and ticketing service.
"Eighty percent of
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