Homestore.com jumps on GMAC deal extension

Jan. 2, 2002 4:43 p.m. PT

Homestore.com Inc., (Nasdaq: HOMS) gained 25 percent Friday after it announced an expansion of its deal with GMAC Real Estate. The deal should will bring in an extra $10 million in sales.

Shares in the home and real estate were up 8 7/8 to 44 1/2. The stock has gained gradually since the company entered into the original $20 million, two-year partnership with GMAC in November of 1999. By that time, the company had already built up its market share; having reached a capitalization equivalent to that of Lycos (Nasdaq: LCOS) back in September.

The agreement calls for Homestore.com to support the expansion of GMAC's real estate, relocation and home finance units with strategic marketing and e-business.

The company competes with real estate and home divisions of Lycos, Microsoft (Nasdaq: MSFT) and AOL (NYSE: AOL), as well as the recently public ImproveNet (Nasdaq: IMPV).