Shares of Homestore(HOMS Quote) were among Nasdaq's winners Monday, rising 12% after private equity firm Elevation Partners agreed to invest $100 million in the online real estate company.
Elevation, which focuses on media and entertainment-related investments and counts rock star Bono among its partners, will invest $100 million in the form of convertible preferred stock. Fred Anderson and Roger McNamee, managing directors and co-founders of Elevation, will join Homestore's board of directors. "Homestore fits perfectly with our investment strategy. The online real estate media opportunity is very large and Homestore is the undisputed leader in the category," Anderson said in a statement.
The preferred stock is convertible into Homestore's stock at $4.20 a share. If converted, the investment would represent about 14% of Homestore's outstanding shares. Homestore plans to use the proceeds for general corporate purposes. Shares were recently trading up 43 cents to $3.99. ...
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