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Exhibit 99.1
Press Releases
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Expedia, Inc. Announces $60 Million Financing from Technology Crossover
Ventures and Microsoft Corporation
BELLVUE, WA, June 27, 2000 - Expedia, Inc. (Nasdaq: EXPE), a leader in
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online travel services, today announced that it has entered an agreement to
receive private investments of $50 million from Technology Crossover
Ventures (TCV), a leading Silicon Valley venture capital firm, and $10
million from Microsoft Corporation. As part of the agreement, Jay Hoag, a
founding general partner of TCV, will join the Expedia(R) board of
directors as its seventh member. The transaction is expected to close after
the early termination or expiration of the Hart-Scott-Rodino waiting
period.
Under the terms of the transaction, Expedia, Inc. will issue a total of
approximately 3.6 million shares of common stock and 723,000 warrants with
an exercise price of $16.60 in exchange for an investment of $60 million.
Of this amount, TCV will invest $50 million and Microsoft will invest $10
million. The price per share is based on the average closing price of
Expedia stock over the three-day trading period ending June 23, 2000. After
completion of the financing, TCV and Microsoft will own approximately 7
percent and 70 percent, respectively, of Expedia's common shares
outstanding.
"We are excited to further solidify our long-standing relationships with
TCV and Microsoft, which are already two of our largest shareholders. We
are particularly pleased that Jay Hoag will bring his many years of
experience with high-growth technology companies to our board of
directors," said Richard Barton, president and CEO of Expedia, Inc.
Palo Alto-based TCV is a leading Internet investor in both public and
private companies. TCV's strategy is to partner with premier pre-IPO and
public Internet companies throughout their rapid development phase and help
them grow. Jay Hoag is founding general partner of TCV and has been a
venture capitalist and technology investor for over 17 years.
"As venture capitalists we identify Internet leaders in public and private
markets and look for ways to build great companies that will generate long
term returns. Online travel and lodging is one of the largest and most
attractive sectors in Internet commerce, and TCV believes that it has
tremendous upside potential," said Jay Hoag. "We believe that Expedia has
the strongest strategic position in this market and a highly compelling
business model."
MSN(R) is Microsoft's network of integrated services and content that help
people get more from the Web. By enabling the Everyday Web, MSN connects
consumers to the information and people they care most about with leading
services including Expedia, MSN Hotmail, MSN Search, and MSN MoneyCentral.
"Expedia continues to be a strategic part of the MSN network," said Brad
Chase, senior vice president in the Consumer Group at Microsoft. "The
integration of Expedia on MSN ensures that consumers have immediate access
to the travel information and services they need."
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About Expedia, Inc.
Expedia, Inc. (Nasdaq: EXPE) operates Expedia.com, a leading online Web site in
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the United States with localized versions for travelers in Canada, Germany, and
the United Kingdom. To help customers Travel Right, Expedia provides the best
combination of air, car and hotel booking, vacation package and cruise offers,
destination information, and point-to-point mapping. Industry experts agree--the
quality and leadership of Expedia was recently recognized through several
awards, including Yahoo! Internet Life's "Best Overall Travel Site," Gomez
Advisors' "Number One Travel Site for Spring 2000," and PC World's 2000 World
Class Award for Best Travel Site.
About TCV
TCV was founded in 1995 to capitalize on the emergence of the Internet and to
create a new model for Internet investing by combining the best of venture
capital and public market investing. It is one of the largest venture firms in
the country focused exclusively on the Internet, having raised over $2.5 billion
since 1995. TCV has twelve partners and is located in Palo Alto, California. The
company provides multi-stage venture funding--from $3 million to $75 million per
company--and leverages its venture activity into the public market. TCV's focus
on high-growth sectors of the Internet includes e-business applications,
Internet infrastructure, Internet services, business-to-consumer, and
business-to-business. For more information, please visit http://www.tcv.com/.
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Expedia and Expedia.com are either registered trademarks or trademarks of
Expedia Inc. in the U.S. and/or other countries.
For more information, press only:
Jamie Trandel, Edelman Public Relations, (312) 240-2687,
jamie [email protected]
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For online press information on Expedia.com:
http://expedia:com/daily/press/
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