Yahoo!, Santa Clara, Calif., last week agreed to buy online community GeoCities, Marina del Rey, Calif., for $4.6 billion in stock. Under the terms of the deal, Yahoo! will issue 0.3384 share of Yahoo! stock for each share of GeoCities common stock. The deal, which is pending shareholder approval, is expected to close in second quarter. A year ago, Yahoo! took a $5 million minority stake in GeoCities, which is the largest home pages community on the Web. Yahoo!'s stock closed up $30 7/8 at $366 3/4 and GeoCities' stock closed up $42 1/4 at $117 1/4.
Copyright January 1999, Crain Communications Inc.