Sabre Holdings Corp. and Preview Travel are creating a new company, Travelocity.com, merging Sabre's Travelocity.com division with Preview Travel. The merger creates the leading online travel service, with a combined registered membership base of 17 million and more than $1 billion in projected 1999 travel sales. The new enterprise will build upon strategic partnerships with major Internet portals including America Online, Netscape, Yahoo!, Lycos, Go Network, Excite@Home and CompuServe. Sabre will own a 70% stake in the combined entity; existing Preview Travel stockholders will hold 30%. The company already has a new, $200 million, five-year contract with AOL, making Travelocity the exclusive reservations engine for all travel-related services within AOL brands. In addition, Yahoo! has extended its existing contract with Travelocity.com and has agreed to invest in the new entity.
Copyright October 1999, Crain Communications Inc.