CitySearch Files Plans for $50-Million IPO

CitySearch Inc., a Pasadena company that runs city guides on the World Wide Web, filed plans to raise as much as $50 million through an initial public offering sometime this summer. CitySearch is battling Microsoft Corp.'s Sidewalk service and others in the competitive world of Internet city guides, which offer entertainment, shopping and other information. The company will use IPO proceeds to expand into national and international markets, make acquisitions and upgrade its computer systems. The company was started in 1995. CitySearch currently has some high-profile investors, including USA Networks Inc., Barry Diller's media company, which owns about 13%, and affiliates of Goldman, Sachs & Co. which own about 12%. Still, like many high-tech companies, CitySearch has yet to post a profit and for the first quarter of this year posted a loss of $7.98 million, compared with a $9.08-million loss in the year-earlier quarter. CitySearch filed its plans with the Securities and Exchange Commission. Underwriters include NationsBanc Montgomery Securities, BancAmerica Robertson Stephens and Donaldson, Lufkin & Jenrette Securities.

Copyright © 2019, Los Angeles Times
EDITION: California | U.S. & World
56°