SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13D
(RULE 13d-101)
INFORMATION TO BE INCLUDED IN STATEMENTS FILED PURSUANT TO RULE 13d-1(a)
AND AMENDMENTS THERETO FILED PURSUANT TO RULE 13d-2(a)
(AMENDMENT NO. 2)
EXPEDIA, INC.
(Name of Issuer)
Common Stock, par value $0.01 per share
(Title of Class of Securities)
30212510
(CUSIP Number)
Carla S. Newell
c/o Technology Crossover Ventures
528 Ramona Street
Palo Alto, California 94301
(650) 614-8200
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
COPY TO:
Eleanor Cornish, Esq.
Gunderson Dettmer Strough Villeneuve Franklin & Hachigan LLP
610 Lincoln Street
Waltham, MA 02451
(781) 795-3554
February 4, 2002
(Date of Event Which Requires Filing of This Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
statement because of Rule 13d-1(e), 13d-1(f) or 13d-1(g), check the following
box [ ].
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV IV, L.P.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 4,060,305 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 4,060,305 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
4,060,305 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
8.02%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 654,008 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV IV STRATEGIC PARTNERS, L.P.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 151,402 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 151,402 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
151,402 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Less than 1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 24,386 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TECHNOLOGY CROSSOVER MANAGEMENT IV, L.L.C.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 4,211,707 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 4,211,707 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
4,211,707 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[ ]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
8.32%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
OO
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 678,394 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV III (GP)
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 4,355 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 4,355 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
4,355 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Less than 1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 701 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV III, L.P.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
[ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 20,690 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 20,690 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
20,690 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Less than 1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 3,332 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV III (Q), L.P.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e)
[ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 549,924 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 549,924 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
549,924 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
1.09%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 88,578 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TCV III STRATEGIC PARTNERS, L.P.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 24,903 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 24,903 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
24,903 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[X]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
Less than 1%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
PN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 4,011 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
TECHNOLOGY CROSSOVER MANAGEMENT III, L.L.C.
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of 599,872 SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by -0- SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 599,872 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
599,872 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[ ]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
1.19%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
OO
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 96,622 shares of
common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
JAY C. HOAG
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of -0- SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by 4,823,499 SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 4,823,499 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
4,823,499 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[ ]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
9.53%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
IN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes options which can be immediately exercised into
10,000 shares of common stock and warrants which can be immediately
exercised into 776,936 shares of common stock.
--------------------------------------------------------------------------------
(1) Name of Reporting Person
RICHARD H. KIMBALL
--------------------------------------------------------------------------------
(2) Check the Appropriate Box if a Member of a Group (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
(3) SEC Use Only
--------------------------------------------------------------------------------
(4) Source of Funds
AF, OO
--------------------------------------------------------------------------------
(5) Check Box if Disclosure of Legal Proceedings
is Required Pursuant to Items 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
(6) Citizenship or Place of Organization
DELAWARE
--------------------------------------------------------------------------------
(7) Sole Voting Power
Number of -0- SHARES OF COMMON STOCK (A)
Shares ------------------------------------------------------------
Beneficially (8) Shared Voting Power
Owned by 4,811,579 SHARES OF COMMON STOCK
Each ------------------------------------------------------------
Reporting (9) Sole Dispositive Power
Person With 4,811,579 SHARES OF COMMON STOCK (A)
------------------------------------------------------------
(10) Shared Dispositive Power
-0- SHARES OF COMMON STOCK
--------------------------------------------------------------------------------
(11) Aggregate Amount Beneficially Owned by Each Reporting Person
4,811,579 SHARES OF COMMON STOCK (A)
--------------------------------------------------------------------------------
(12) Check Box if Aggregate Amount in Row (11) Excludes Certain Shares
[ ]
--------------------------------------------------------------------------------
(13) Percent of Class Represented by Amount in Row (11)
9.51%
--------------------------------------------------------------------------------
(14) Type of Reporting Person
IN
--------------------------------------------------------------------------------
(A) Please see Item 5. Includes warrants exercisable into 775,016 shares of
common stock.
ITEM 1. SECURITY AND ISSUER.
This statement relates to shares of common stock, par value $0.01 per share (the
"Common Stock"), of Expedia, Inc., a Washington corporation ("Expedia" or the
"Company"). The Company's principal executive offices are located at 13810 SE
Eastgate Way, Suite 400, Bellevue, Washington 98005.
ITEM 2. IDENTITY AND BACKGROUND.
(a)-(c), (f). This statement is being filed by (1) TCV IV, L.P., a Delaware
limited partnership ("TCV IV"), (2) TCV IV Strategic Partners, L.P., a Delaware
limited partnership ("Strategic Partners IV"), (3) Technology Crossover
Management IV, L.L.C., a Delaware limited liability company ("Management IV"),
(4) TCV III (GP), a Delaware general partnership ("TCV III (GP)"), (5) TCV III,
L.P., a Delaware limited partnership ("TCV III"), (6) TCV III (Q), L.P., a
Delaware limited partnership ("TCV III (Q)"), (7) TCV III Strategic Partners,
L.P., a Delaware limited partnership ("Strategic Partners III"), (8) Technology
Crossover Management III, L.L.C.,a Delaware limited liability company
("Management III"), (9) Jay C. Hoag ("Mr. Hoag") and (10) Richard H. Kimball
("Mr. Kimball"). TCV IV, Strategic Partners IV, Management IV, TCV III (GP), TCV
III, TCV III (Q), Strategic Partners III, Management III, Mr. Hoag and Mr.
Kimball are sometimes collectively referred to herein as the Reporting Persons.
The agreement among the Reporting Persons relating to the joint filing of this
statement is attached hereto as Exhibit 1 and is incorporated by reference
herein.
TCV IV, Strategic Partners IV, Management IV, TCV III (GP), TCV III, TCV III
(Q), Strategic Partners III and Management III are each principally engaged in
the business of investing in securities of the Company and other companies.
Management IV is the general partner of TCV IV and Strategic Partners IV.
Management III is the general partner of TCV III (GP), TCV III, TCV III (Q) and
Strategic Partners III. The address of the principal business and office of each
of TCV IV, Strategic Partners IV, Management IV, TCV III (GP), TCV III, TCV III
(Q), Strategic Partners III and Management III is 528 Ramona Street, Palo Alto,
California 94301.
Mr. Hoag and Mr. Kimball are the managing members of Management IV and
Management III. Mr. Hoag and Mr. Kimball are each United States citizens, and
the present principal occupation or employment of each is as a managing member
of Management IV, Management III and related entities. The business address of
each of Mr. Hoag and Mr. Kimball is 528 Ramona Street, Palo Alto, California
94301.
(d), (e). During the last five years, none of TCV IV, Strategic Partners IV,
Management IV, TCV III (GP), TCV III, TCV III (Q), Strategic Partners III,
Management III, Mr. Hoag or Mr. Kimball has (1) been convicted in a criminal
proceeding (excluding traffic violations or similar misdemeanors) or (2) been a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
TCV IV and Strategic Partners IV purchased the following shares of the Company's
Common Stock in the open market (the "Market Shares"):
Name of Investor Date Shares Acquired Price per Share
---------------------- ------ --------------- ----------------
TCV IV 9/1/00 9,640 $15.9375
Strategic Partners IV 9/1/00 360 $15.9375
TCV IV 9/5/00 4,820 $15.9375
Strategic Partners IV 9/5/00 180 $15.9375
TCV IV 9/6/00 28,922 $15.9375
Strategic Partners IV 9/6/00 1,078 $15.9375
TCV IV 9/7/00 9,641 $15.9375
Strategic Partners IV 9/7/00 359 $15.9375
TCV IV 11/30/00 2,410 $12.2500
Strategic Partners IV 11/30/00 90 $12.2500
The source of funds for the acquisition of the Market Shares by TCV IV and
Strategic Partners IV was from capital contributions from their respective
partners.
Pursuant to the terms of an Amended and Restated Agreement and Plan of
Recapitalization and Merger dated July 15, 2001 (the "Merger Agreement") by and
among Expedia, USA Networks, Inc. and Microsoft Corporation (the "Merger"), each
shareholder that owned Expedia Common Stock immediately prior to the effective
time of the Merger, including TCV IV, Strategic Partners IV, TCV III (GP), TCV
III, TCV III (Q) and Strategic Partners III, received 0.1920 warrants (the
"Merger Warrants") for each share of Expedia Common Stock owned at the time of
the Merger at an exercise price of $52.00 per share. TCV IV, Strategic Partners
IV, TCV
III(GP), TCV III, TCV III(Q) and Strategic Partners III received Merger Warrants
exercisable for the number of shares of Expedia Common Stock listed below (the
"Merger Shares"):
Name of Investor Merger Shares Acquired
---------------------- ----------------------
TCV IV 654,008
Strategic Partners IV 24,386
TCV III (GP) 701
TCV III 3,332
TCV III (Q) 88,578
Strategic Partners III 4,011
TCV IV, Strategic Partners IV, TCV III (GP), TCV III, TCV III (Q) and Strategic
Partners III did not pay any additional consideration for the Merger Warrants.
The Merger Agreement is attached hereto as Exhibit 2 and is incorporated by
reference herein.
Pursuant to a Common Stock Purchase Agreement dated June 25, 2000 (the "Purchase
Agreement") by and among Expedia, on the one hand, and TCV IV and Strategic
Partners IV (the "Investors"), on the other hand, Expedia issued to TCV IV and
Strategic Partners IV warrants (each, a "Warrant" and collectively, the
"Warrants"), at a price of $.01 per underlying share to purchase 580,609 and
21,650 shares (the "Warrant Shares"), respectively, of Common Stock at a per
share exercise price of $16.604167. On September 17, 2001, the Investors
exercised these Warrants. The exercise price was paid through the surrender of
Common Stock underlying the Warrants (otherwise known as net exercise). The
Warrants converted into 322,495 shares and 12,025 shares of Common Stock for TCV
IV and Strategic Partners IV, respectively (the "Exercise Shares").
The source of funds for the acquisition of Exercise Shares by TCV IV and
Strategic Partners IV was from the surrender of the Warrants.
The Purchase Agreement and Warrant are incorporated by reference and are listed
as Exhibit 3 and Exhibit 4, respectively.
ITEM 4. PURPOSE OF TRANSACTION.
Depending on the factors discussed herein, the Reporting Persons may, from time
to time, exercise all or a portion of the Merger Warrants and may acquire
additional shares of Common Stock and/or retain and/or sell all or a portion of
the Market Shares, Merger Shares, Exercise Shares and/or Common Stock issued
upon exercise of the Merger Warrants in the open market or in privately
negotiated transactions. Any actions the Reporting Persons might undertake will
be dependent upon the Reporting Persons' review of numerous factors, including,
among other things, the price levels of the Common Stock; general market and
economic conditions; ongoing evaluation of the Company's business, financial
condition, operations and prospects; the relative attractiveness of alternative
business and investment opportunities; and other future developments.
Except as set forth above, the Reporting Persons have no present plans or
intentions which would result in or relate to any of the transactions described
in subparagraphs (a) through (j) of Item 4 of Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a), (b). As of the close of business on February 4, 2002, TCV IV, Strategic
Partners IV, TCV III (GP), TCV III, TCV III (Q) and Strategic Partners III
direct ownership of Common Stock is as follows:
Percentage of
Name of Investor Number of Total Shares Outstanding Shares
Outstanding Shares (Including Warrants) (Including Warrants)(a)
------------------ ---------------------- -----------------------
TCV IV 4,060,305 8.02%
Strategic Partners IV 151,402 Less than 1%
TCV III (GP) 4,355 Less than 1%
TCV III 20,690 Less than 1%
TCV III (Q) 549,924 1.09%
Strategic Partners III 24,903 Less than 1%
(a) All percentages in this table are based on the 50,619,000 shares of Common
Stock of the Company outstanding, as reported in the Company's Form 10-K filed
with the Securities and Exchange Commission on December 12, 2001.
Each of TCV IV and Strategic Partners IV has the sole power to dispose or direct
the disposition of the Market Shares, Exercise Shares and Merger Warrants which
it holds directly as well as the Merger Shares acquirable upon exercise of the
Merger Warrants. Each of TCV IV and Strategic Partners IV has the sole power to
direct the vote of its respective Market Shares and Exercise Shares, and will
have the power to vote or direct the vote of the Merger Shares upon exercise of
the Merger Warrants.
Management IV is the sole general partner of each of TCV IV and Strategic
Partners IV and in such capacity may be deemed to have the sole power to dispose
or direct the disposition of the Market Shares, Exercise Shares and Merger
Warrants and Merger Shares which TCV IV and Strategic Partners IV would hold
upon exercise of such Merger Warrants, and to direct the vote of the Market
Shares and Exercise Shares as well as Merger Shares upon exercise of the Merger
Warrants. Management IV disclaims beneficial ownership of the securities owned
by TCV IV and Strategic Partners IV except to the extent of its pecuniary
interest therein.
Messrs. Hoag and Kimball are the managing members of Management IV. Under the
operating agreement of Management IV, each of Messrs. Hoag and Kimball have the
independent power to cause the funds managed by Management IV to buy and sell
securities of publicly traded portfolio companies, however, in general, they
must act by unanimous consent with respect to all other matters, including
directing the voting of such securities. As a result, each of Messrs. Hoag and
Kimball may be deemed to have the sole power to dispose or direct the
disposition of the Market Shares, Exercise Shares and Merger Warrants held by
TCV IV and Strategic Partners IV, as well as Merger Shares which TCV IV and
Strategic Partners IV would own upon exercise of such Merger Warrants, and may
be deemed to have the shared power to vote or direct the vote of the Market
Shares and Exercise Shares as well as Merger Shares upon exercise of such Merger
Warrants. Messrs. Hoag and Kimball disclaim beneficial ownership of the
securities owned by TCV IV and Strategic Partners IV except to the extent of
their pecuniary interest therein.
Each of TCV III (GP), TCV III, TCV III (Q) and Strategic Partners III has the
sole power to dispose or direct the disposition of the Market Shares, Exercise
Shares and Merger Warrants which it holds directly as well as the Merger Shares
acquirable upon exercise of the Merger Warrants. Each of TCV III (GP), TCV III,
TCV III (Q) and Strategic Partners III has the sole power to direct the vote of
its respective Market Shares and Exercise Shares, and will have the power to
vote or direct the vote of the Merger Shares upon exercise of the Merger
Warrants.
Management III is the sole general partner of each of TCV III (GP), TCV III, TCV
III (Q) and Strategic Partners III and in such capacity may be deemed to have
the sole power to dispose or direct the disposition of the Market Shares,
Exercise Shares and Merger Warrants as well as and Merger Shares which TCV III
(GP), TCV III, TCV III (Q) and Strategic Partners III would hold upon exercise
of such Merger Warrants, and to direct the vote of the Market Shares and
Exercise Shares, as well as the Merger Shares upon exercise of the Merger
Warrants. Management III disclaims beneficial ownership of the securities owned
by TCV III (GP), TCV III, TCV III (Q) and Strategic Partners III except to the
extent of its pecuniary interest therein.
Messrs. Hoag and Kimball are the managing members of Management III. Under the
operating agreement of Management III, each of Messrs. Hoag and Kimball have the
independent power to cause the funds managed by Management III to buy and sell
securities of publicly traded portfolio companies, however, in general, they
must act by unanimous consent with respect to all other matters, including
directing the voting of such securities. As a result, each of Messrs. Hoag and
Kimball may be deemed to each have the sole power to dispose or direct the
disposition of the Market Shares, Exercise Shares and Merger Warrants held by
TCV III (GP), TCV III, TCV III (Q) and Strategic Partners III as well as Merger
Shares TCV III (GP), TCV III, TCV III (Q) and Strategic Partners III would own
upon exercise of such Merger Warrants, and may be deemed to have the shared
power to vote or direct the vote of the Market Shares and Exercise Shares as
well as Merger Shares upon exercise of such Merger Warrants. Messrs. Hoag and
Kimball disclaim beneficial ownership of the securities owned by TCV III (GP),
TCV III, TCV III (Q) and Strategic Partners III except to the extent of their
pecuniary interest therein.
The Reporting Persons may be deemed to be acting as a group in relation to their
respective holdings in Expedia but do not affirm the existence of any such
group.
Except as set forth in this Item 5(a) - (b), each of the Reporting Persons
disclaims beneficial ownership of any Common Stock owned
beneficially or of record by any other Reporting Person.
(c). Except as set forth herein, none of the Reporting Persons has effected any
transaction in the Common Stock during the past 60 days.
(d). Not applicable.
(e). Not applicable.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
Not applicable.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
Exhibit 1 Joint Filing Agreement (incorporated by reference from Exhibit 1
to the Schedule 13D relating to the common stock of Expedia filed
on July 5, 2000).
Exhibit 2 Amended and Restated Agreement and Plan of Recapitalization and
Merger dated July 15, 2001 (incorporated by reference to Annex A
to the Company's Amendment No. 1 to its Report on Form S-4 filed
with the Securities and Exchange Commission on November 9, 2001).
Exhibit 3 Common Stock Purchase Agreement, dated June 25, 2000, among
Expedia, Inc., TCV IV, L.P. and TCV IV Strategic Partners, L.P.
(incorporated by reference from Exhibit 2 to the Schedule 13D
relating to the common stock of Expedia filed on July 5, 2000).
Exhibit 4 Form of Warrant to Purchase Common Stock of Expedia, Inc., to be
issued to TCV IV, L.P. and TCV IV Strategic Partners, L.P. on the
Closing Date (incorporated by reference from Exhibit 3 to the
Schedule 13D relating to the common stock of Expedia filed on
July 5, 2000).
Exhibit 5 Statement Appointing Designated Filer and Authorized Signatories
dated February 22, 2000 (incorporated by reference from Exhibit 8
to the Schedule 13D relating to the common stock of Expedia, Inc.
filed on August 31, 2000).
Exhibit 6 Statement Appointing Designated Filer and Authorized Signatories
dated June 1, 2000 (incorporated by reference from Exhibit F to
the Schedule 13G relating to the common stock of eLoyalty
Corporation filed on June 5, 2000).
SIGNATURE
After reasonable inquiry and to the best of each of the undersigned's knowledge
and belief, each of the undersigned certifies that the information set forth in
this statement is true, complete and correct.
March 21, 2002 TCV III (GP),
a Delaware General Partnership
By: Technology Crossover Management III, L.L.C.,
a Delaware Limited Liability Company,
Its Managing General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 TCV III, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management III, L.L.C.,
a Delaware Limited Liability Company,
Its General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 TCV III(Q), L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management III, L.L.C.,
a Delaware Limited Liability Company,
Its General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2000 TCV III Strategic Partners, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management III, L.L.C.,
a Delaware Limited Liability Company,
Its General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 Technology Crossover Management III, L.L.C.,
a Delaware Limited Liability Company,
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 TCV IV, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management IV, L.L.C.,
a Delaware Limited Liability Company,
Its General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 TCV IV Strategic Partners, L.P.,
a Delaware Limited Partnership
By: Technology Crossover Management IV, L.L.C.,
a Delaware Limited Liability Company,
Its General Partner
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 Technology Crossover Management IV, L.L.C.,
a Delaware Limited Liability Company,
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 Jay C. Hoag
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
March 21, 2002 Richard H. Kimball
By: /s/ Carla S. Newell
-----------------------------------------------
Carla S. Newell, Attorney-in-Fact
EXHIBIT INDEX
Exhibit 1 Joint Filing Agreement (incorporated by reference from Exhibit 1
to the Schedule 13D relating to the common stock of Expedia filed
on July 5, 2000).
Exhibit 2 Amended and Restated Agreement and Plan of Recapitalization and
Merger dated July 15, 2001 (incorporated by reference to Annex A
to the Company's Amendment No. 1 to its Report on Form S-4 filed
with the Securities and Exchange Commission on November 9, 2001).
Exhibit 3 Common Stock Purchase Agreement, dated June 25, 2000, among
Expedia, Inc., TCV IV, L.P. and TCV IV Strategic Partners, L.P.
(incorporated by reference from Exhibit 2 to the Schedule 13D
relating to the common stock of Expedia filed on July 5, 2000).
Exhibit 4 Form of Warrant to Purchase Common Stock of Expedia, Inc., to be
issued to TCV IV, L.P. and TCV IV Strategic Partners, L.P. on the
Closing Date (incorporated by reference from Exhibit 3 to the
Schedule 13D relating to the common stock of Expedia filed on
July 5, 2000).
Exhibit 5 Statement Appointing Designated Filer and Authorized Signatories
dated February 22, 2000 (incorporated by reference from Exhibit 8
to the Schedule 13D relating to the common stock of Expedia, Inc.
filed on August 31, 2000).
Exhibit 6 Statement Appointing Designated Filer and Authorized Signatories
dated June 1, 2000 (incorporated by reference from Exhibit F to
the Schedule 13G relating to the common stock of eLoyalty
Corporation filed on June 5, 2000).