CBS CORPORATION AND MOVIETICKETS.COM ANNOUNCE $25,000,000 EQUITY FOR PROMOTION DEAL
CBS to Receive 5% Equity Stake in MovieTickets.com
(Las Vegas, NV - March 8, 2000) – CBS Corporation (NYSE: CBS) and MovieTickets.com, Inc., a new online ticketing venture owned by AMC Entertainment Inc. (Amex: AEN), Hollywood.com, Inc. (Nasdaq: HOLL) and National Amusements, Inc. today announced, at the annual ShoWest theatrical exhibition convention in Las Vegas, that they have signed an agreement in principle for CBS to receive a 5% ownership position in MovieTickets.com, Inc. Infinity Broadcasting Corporation (NYSE: INF), a majority-owned subsidiary of CBS Corporation, will receive a pro rata share of the investment. In exchange, MovieTickets.com will receive $25,000,000 of CBS promotion across the full range of CBS media properties. In addition to the $25,000,000 advertising commitment, the transaction includes promotional tie-ins between the new online movie ticketing venture and CBS's participating radio and television stations for the promotion of MovieTickets.com's services on the stations and their web sites.
The announcement was made by Mel Karmazin, President and Chief Executive Officer, CBS, and the Co-Chairs of MovieTickets.com, Peter Brown, Shari E. Redstone and Mitchell Rubenstein.
The agreement generally provides for the CBS Television Network, the CBS Television Stations Division, CBS Cable, and Infinity Broadcasting, which will soon include approximately 180 radio stations pending a transaction with Clear Channel Communications, Inc. to promote MovieTickets.com during broadcasts and on outdoor media pursuant to a five-year promotional schedule.
Speaking of the alliance with MovieTickets.com, Mr. Karmazin said: "MovieTickets.com represents a new way to provide a great service to consumers by way of the Internet which is highly complementary with CBS's and Infinity's strong local presence. Along with our partners at Hollywood.com, we are pleased to add MovieTickets.com to our portfolio of New Media investments."
In addition to CBS Corporation's direct equity interest in MovieTickets.com, CBS is the largest shareholder in Hollywood.com.
Mitchell Rubenstein, Co-Chairman of MovieTickets.com and Chairman and CEO of Hollywood.com, Inc., stated "With CBS's promotion behind MovieTickets.com, we are looking forward to a substantial launch of our online movie ticketing venture this Memorial Day timed to coincide with the release of Mission Impossible II. The CBS/MovieTickets.com alliance further strengthens Hollywood.com's ties with CBS and we look forward to expanding this valued relationship through MovieTickets.com."
Completion of this transaction is subject to execution of a definitive agreement, customary closing conditions, and approvals by the companies' boards of directors.
MovieTickets.com is the dedicated Internet site for the sale of movie tickets, with additional content to assist users with their moviegoing plans. The shareholders of MovieTickets.com, Inc. are Hollywood.com, Inc. (Nasdaq: HOLL), AMC Entertainment Inc. (Amex: AEN) and National Amusements, Inc. The web site is scheduled to launch Memorial Day weekend. MovieTickets.com will offer ticketing for AMC Theatres and National Amusements theaters and is open to all other theater chains that desire to offer their tickets for sale online. Upon its launch, MovieTickets.com will offer tickets for sale at theaters in the top ten markets in the country as well as in approximately 70% of the top 50 markets in the country, and will also include approximately 50% of the top 100 grossing theaters in the country.
About CBS Corporation
CBS Corporation is composed of CBS Television, CBS Internet Group, Cable, and a majority stake in Infinity Broadcasting Corporation, its radio and outdoor business. CBS Television is comprised of the CBS Television Network and 16 CBS owned television stations, eight of which are in the Top 10 markets. CBS Cable consists of two country networks and regional sports operations. Infinity Broadcasting Corporation operates 163 radio stations and the Company's outdoor businesses. In addition, Infinity Broadcasting recently entered into an agreement to acquire an additional 18 radio stations from Clear Channel Communications, Inc.
The matters discussed herein that are forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. These forward-looking statements generally can be identified as such because the context of the statement include words such as we "believe," "expect," "anticipate" or other words of similar import. Similarly, statements herein that describe our objectives, plans or goals also are forward-looking statements. Potential risks and uncertainties include, but are not limited to; the risks described in Hollywood.com, Inc.'s, AMC Entertainment Inc.'s and National Amusements, Inc.'s filings with the Securities and Exchange Commission.
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