AOL To Buy MovieFone

America Online said Monday it's agreed to buy MovieFone for $388 million in stock.

AOL, a provider of various online services, said in a statement that the deal will make MovieFone a "key anchor tenant" on AOL's core Web site, enhance "the leadership of AOL's Digital City in local interactive services," and provide "extensive new cross-promotional and branding opportunities." (Editor's note: CBS News is the broadcast news provider for America Online.)

MovieFone, which offers movie theater showing-time information and online ticketing services, will be called "AOL MovieFone."

MovieFone shares (MOFN) rose 1 1/2 to 26 1/2 following a huge run-up Friday on speculation about a possible sale. Shares of AOL (AOL) fell 4 11/16 to 171 1/16.

Bob Pittman, president and chief operating officer of AOL, said MovieFone adds "an exciting new area of local e-commerce to AOL and our other brands" and is a "perfect fit with Digital City."

Digital City features several sites that allow users to search for restaurants and movie theaters; check news, sports and weather; and find other information in their particular areas. Major-market sites include New York, Los Angeles, Chicago, Philadelphia, San Francisco, Boston, Washington, D.C., and Dallas-Fort Worth.

Written By David B. Wilkerson