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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the Securities
Exchange Act of 1934 (Amendment No. )
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
Check the appropriate box:
[_] Preliminary Proxy Statement
[_] CONFIDENTIAL, FOR USE OF THE
COMMISSION ONLY (AS PERMITTED BY
RULE 14A-6(E)(2))
[_] Definitive Proxy Statement
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[X] Soliciting Material Pursuant to (S) 240.14a-11(c) or (S) 240.14a-12
Homestore.com
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
[X] No fee required.
[_] Fee computed on table below per Exchange Act Rules 14a-6(i)(4) and 0-11.
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(3) Per unit price or other underlying value of transaction computed
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[_] Fee paid previously with preliminary materials.
[_] Check box if any part of the fee is offset as provided by Exchange
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homestore.com(TM)
There's no place like home. (TM)
<PAGE>
Transaction Summary
. Transaction: Homestore.com acquires Move.com
. Structure: Tax free, stock-for-stock acquisition
. Shares Issued: 26.3 HOMS shares
. Ownership: Pro forma 80% HOMS shareholders /
20% Cendant (15% to be held by Cendant Corp)
. Board: 6 HOMS / 1 Cendant
. Governance: 10 year standstill;
15 years proportionate voting
. Conditions: HSR clearance; Homs shareholder approval
. Accounting: Purchase accounting
. Closing: Anticipated Q1 2001
_____________________________________________________________homestore.com(TM)__
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Transaction Highlights
. Highly complementary fit = a powerful combination
. Leading online real estate networks
. Leverages top offline real estate network
- Coldwell Banker, Century21, ERA, NRT franchises
. Leaders in online rentals
. Broad suite of relocation tools + top relocation company
. Critical mass for online real estate transactions
. 40 year online franchise and listing agreement
. Numerous top and bottom line synergies
. Accretive transaction
_____________________________________________________________homestore.com(TM)__
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move.com
It's a better move
. Cendant's online real estate and relocation destination
. Headquartered in San Francisco
<TABLE>
<CAPTION>
Rent.net
40 Year ONLINE Product
Agreements move.com RENTAL GUIDE Commitments Other
It's a better move
<S> <C> <C> <C> <C>
. Exclusive access . Online home . A leading online . Cendant to purchase . Welcome Wagon
to aggregated listings, rental site professional products online and print
listings from mortgages and for franchises and advertising
leading offline moving related . 13,000+ agents company with
franchises - services apartment 35,000+
Coldwell Banker, communities . Cendant investment merchants
Century21 and . Distribution in HomeStore relationships
ERA relationships with . Senior housing, transaction platform
AOL, Altavista, corporate . Exclusive NRT
. Replaces and Yahoo!, housing and . 3-year exclusive listings
extends existing Excite@Home, self-storage transaction platform
agreements Lycos, Go services commitment from . Marketing
terminating in Network, Ask NRT and Cendant agreement
June, 2002 Jeeves Mobility
through 2040
</TABLE>
_____________________________________________________________homestore.com(TM)__
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A Complementary Fit =
A Powerful Combination
<TABLE>
<CAPTION>
homestore.com move.com
It's a better move
<S> <C>
. Leading real estate network . Leading real estate network
. Listings: 1,400,000 . Listings: 450,000
. Traffic: 4.5MM UU . Traffic: 1.9MM UU
. Web presence for 4 of top 7 national . Web presence for other 3 of top 7 national
franchises franchises
. Established professional products and . Largest network of real estate
services provider professionals
. Industry leading partnerships . Leverages Cendant's offline assets
. NAR, NAHB, MHI, AIA, NCOSH . Coldwell Banker, Centruy21, ERA, NRT
. FNMA . PHH, Cendant Mobility
. Leader in rentals . Leader in rentals
</TABLE>
_____________________________________________________________homestore.com(TM)__
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the vision
a wired marketplace
-------------------
Homestore.com(TM) has created an
online marketplace
for the home and is
enabling its consumer
and professional participants to
communicate and
transact business together
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CONSUMER
[GRAPHIC]
Shelter and Self Expression
Ideas - Decisions - Transactions
V-Portal
BUY/ SELL/
FIND TRANSACT MOVE WIRE PERSONALIZE MAINTAIN TRANSACT
V-ASP
Marketing - Leads - Transactions
Sell Services and Sell Products
[GRAPHIC]
PROFESSIONAL
A visual of the wired marketplace:
Globe showing consumers on top and professionals on bottom encircling a bar
across the middle with all the tasks involved in the home life cycle.
The top half of the Globe is title: V-PORTAL referring to our vertical portal
for consumers.
The bottom half of the Globe is title: V-ASP referring to our vertical
application solutions provider strategy for home service professionals.
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Market Size
[CHART]
Two pie charts showing Size of Market:
Pie chart on the left shows $5.4 Trillion globally made up of $3.5 trillion
international and $1.9 trillion for U.S.
Pie chart on the right shows the breakout of the US market of $1.9 Trillion
dollars into:
$360 billion Rentals with footnote 6
$940 billion Existing Homes with footnote 1
$175 billion New Homes with footnote 5
$140 billion Remodeling with footnote 4
$225 billion Products with footnote 3
$95 billion Real estate transaction fees with footnote 2
Sources: /1/ /2/ Real Estate Outlook, NAR April 2000; /2/ Mortgage Bankers
Assoc., Freddie Mac, Fannie Mae, Fidelity National Financial, Insure.com,
National Notary Association and Mortgage Insurance Companies of America; /3/
Demographics USA, 1999, Radio Advertising Bureau's Instant Background Report,
1999, Retail Survey US Census 1999; /3/ /4/ Harvard Joint Center for Housing
Studies, April 2000; /4/ US Census c-50 report, July 2000; /5/ US Census
Manufacturing and Construction Division 1999; /6/ MP/F Research March 2000,
National Multi Housing Council January 2000; /7/ Self Storage Almanac 1999,
Household Goods Carriers Bureau 1998
________________________________________________________homestore.com(TM)_______
Source: EuroMonitor: European Marketing Data and Statistics, International
Marketing Data and Statistics, 2000
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Addressable Market
[CHART]
Pie chart showing Size of Addressable Market of over $300 billion:
Pie chart shows the breakout into:
$5 billion Advertising with footnote 1
$200 billion International with footnote 5
$12 billion Relocation with footnote 6
$23 billion eCommerce with footnote 4
$10 billion Subscription made up of Yellow Pages, Classifieds, Other B2B with
footnote 2
$95 billion Real estate transaction fees with footnote 3
Footnotes are:
/1/ Advertising Age, Sept. 1999; /2/ Newspaper Assoc. of America 1999, Yellow
Pages Publishers Association 1998,1999, Warburg Dillon Reed B2B eCommerce
January 2000; /3/ Real Estate Outlook, NAR April 2000; Mortgage Bankers Assoc.
mbaa.org/marketdata/2000, Inside Mortgage Finance; /4/ Demographics USA, 1999,
Radio Advertising Bureau's Instant Background Report, 1999, Retail Survey US
Census 1999, Harvard Joint Center for Housing Studies, April 2000. All at a 10%
margin; /5/ Estimate at 6% of total (less than US) /6/ Household Goods Carriers
Bureau 1998
______________________________________________________homestore.com(TM)_________
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[HOMESTORE.COM WEB PAGE]
Expanding the addressable market
<PAGE>
[CHART]
Bar chart showing a timeline of Homestore's expansion into different categories
with visual of Homestore.com home page in background:
1997 Existing Homes
1998 Existing Homes, New Homes
Q1 1999 Existing Homes, New Homes
Q2 1999 Existing Homes, New Homes, Rentals
Q3 1999 Existing Homes, New Homes, Rentals, Remodel
Q4 1999 Existing Homes, New Homes, Rentals, Remodel, Move, Finance Decorate,
Home Tech, Shop
Q1 2000 Existing Homes, New Homes, Rentals, Remodel, Move, Finance Decorate,
Home Tech, Shop, Manufactured Housing, Architecture, Vacation Homes,
RE Transaction, Content Management
Q2 2000 Existing Homes, New Homes, Rentals, Remodel, Move, Finance Decorate,
Home Tech, Shop, Manufactured Housing, Architecture, Vacation Homes,
RE Transaction, Content Management, Lawn and Garden, Senior Housing,
Health and Safety, Contact Management, Telecommunications
Q3 2000 Existing Homes, New Homes, Rentals, Remodel, Move, Finance Decorate,
Home Tech, Shop, Manufactured Housing, Architecture, Vacation Homes,
RE Transaction, Content Management, Lawn and Garden, Senior Housing,
Health and Safety, Contact Management, Telecommunications, Relocation,
Van lines, AOL House and Home Channel, Utilities, Comparable Sales
<PAGE>
CONSUMER
[GRAPHIC]
ADVERTISING
V-Portal
BUY/ SELL/
FIND TRANSACT MOVE WIRE PERSONALIZE MAINTAIN TRANSACT
V-ASP
TRANSACTIONS
MARKETING - SUBSCRIPTIONS - ASP PRODUCTS
[GRAPHIC]
PROFESSIONAL
How we monetise the wired marketplace:
Globe showing consumers on top and professionals on bottom encircling a bar
across the middle with all the tasks involved in the home life cycle:
Below consumers is a descriptive word in a semi-circle expressing Homestore's
revenue stream on the consumer side: Advertising.
The top half of the Globe is titled: V-portal referring to our verticle portal
Below professionals are descriptive words in a semi-circle expressing
Homestore's revenue stream on the professional side. Subscriptions (both
marketing and ASP products). Then a second semi-circle with the second revenue
stream from professionals: Transactions.
The bottom half of the Globe is titled: V-ASP referring to our vertical ASP
products for home service professionals
______________________________________________________homestore.com(TM)_________
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Marketing Subscription Revenue
Homestore's . Subscription-based marketing services for professionals
Business:
. On line classifieds and "yellow pages"
. 131,000 professional subscribers Q3 2000
________________________________________________________________________________
Acquisition . Substantially increases professional subscriber base
Benefits:
. Creates more attractive audience
. Larger consumer audience
. Clear leader in rentals
. 35,000 merchants (Welcome Wagon)
. Reduces customer acquisition costs
. Accelerates product development
______________________________________________________homestore.com(TM)_________
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ASP Subscription Revenue
Homestore's . Mission critical applications for the professional
Business:
. Hosting services
. Listings management
. Contact management
. Back office technology
________________________________________________________________________________
Acquisition . ASP products become preferred solution for Cendant network
Benefits:
. Usage commitment
. Hosting commitment for 3 Cendant brand sites
. Expands ASP footprint and increases stickiness
. Reduces customer acquisition costs
. Accelerates product development
______________________________________________________homestore.com(TM)_________
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Transaction Revenue
Homestore's . Enabling technology for real estate transactions
Business:
. Buying/selling a home (eRealtor.com)
. Moving (iMove)
. More to come...
________________________________________________________________________________
Acquisition . Builds critical mass for transaction solutions
Benefits:
. 3 year transaction platform usage commitment
. Cendant Mobility
- Leader in relocation
- 50,000 transactions per year
. NRT
- Top broker network
- 350,000 transactions per year
. Endorsement of platform by Coldwell Banker,
Century 21, ERA, NRT
. Cendant investment in eRealtor.com
______________________________________________________homestore.com(TM)_________
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Advertising Revenue
Homestore's . Building the most attractive audience for advertisers
Business:
________________________________________________________________________________
Acquisition . Extends consumer reach
Benefits:
. 1.5MM UU (6MM total)
. Additional eyeball minutes
. Enhances new categories
. Senior housing
. Corporate services
. Self-storage
. One-stop shopping for advertisers
. Adds Cendant brands as a new promotion channel
______________________________________________________homestore.com(TM)_________
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Integration Priorities
. John Giesecke to manage the integration process
. Task force headed by the heads of technology, HR, sales and ecommerce
. Focused on:
. Maximizing top-line synergies
. Retaining key talent
. Site and facility integration
. Sales force integration
. Integrated local merchant strategy
. Cutting costs and reducing redundancy
______________________________________________________homestore.com(TM)_________
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Substantial Cost Savings
. Reduce customer acquisition costs
. Leverage and consolidate distribution - AOL, Yahoo!, Microsoft
. Reduce marketing expenses - image, branding
. Consolidate back office and other G&A functions
. Achieve efficiencies in consolidation of sites
. Consolidate facilities
______________________________________________________homestore.com(TM)_________
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Appropriate Governance
. Control: 6 HOMS/1 Cendant board seat
. Standstill agreement: 10 years
. Voting agreement: Cendant shares vote in proportion with
majority for 15 years
. Sale restrictions: No sales in year 1
Years 2 and 3 limited to 3.2MM shares in total
Sales limited to 800,000 shares per authorized
quarter in no more than 4 out of 8 quarters
______________________________________________________homestore.com(TM)_________
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Long-Term Pro Forma Business Model
Target
------
Gross Margin 75 - 80%
Sales & Marketing 36 - 40%
Research & Development 5 - 6%
General & Administrative 9 - 10%
Operating Margin 20 - 25%
______________________________________________________homestore.com(TM)_________
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Transaction Highlights
. Highly complementary fit = a powerful combination
. Leading online real estate networks
. Leverages top offline real estate network
- Coldwell Banker, Century21, ERA, NRT franchises
. Leaders in online rentals
. Broad suite of relocation tools + top relocation company
. Critical mass for online real estate transactions
. 40 year online franchise and listing agreement
. Numerous top and bottom line synergies
. Accretive transaction
______________________________________________________homestore.com(TM)_________
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homestore.com (TM)
There's no place like home. (TM)
