USA was down 2 3/16, or 4%, to 49 15/16 in mid-afternoon trading. PRC soared 3 3/4, or 17%, to 25 1/2 on the news. (USA Networks ended down 2 13/16, or 5%, to 49 1/4, while Precision Resources finished up 3 7/16, or 16%, to 25 1/8.)
Under the terms of the agreement, USA Networks said it will exchange 0.54 share for each PRC share, or about $28.11. That represents a 29% premium over Tuesday's close of 21 3/4.
The acquisition of PRC comes months after USA Network said it would form a new business unit, dubbed
USA Electronic Commerce and Services
, offering business-to-business e-commerce services to other companies. In addition to owning cable networks
, the Barry Diller-controlled company owns the
Home Shopping Network
, which make up the bulk of its own e-commerce activities.
The combination of PRC with the new e-commerce unit gives USA "an unexpected jumpstart," said Barry Baker, president and chief operating officer at USA Networks, in a statement. "Together, these companies will outpace the competition in delivering a comprehensive suite of e-commerce solutions to third parties."