Zip2 and CitySearch Cancel Merger Plans

Zip2 and CitySearch said they have mutually agreed not to pursue their planned merger.

Citing differences in their technologies, product strategies and business models discovered in the course of planning the integration, both parties said they recognized that the merger would not be in the best interests of either company.

The companies said they may explore options to work collaboratively on appropriate projects in the future. However, each company independently concluded that their long-term objectives and those of their partners were better served by pursuing alternative growth strategies.

CitySearch, based in Pasadena, CA, develops Internet city guides that deliver up-to-date information on arts and entertainment events, community activities, recreation, and shopping and services to consumers. CitySearch is built from the ground up in the community, in partnership with local media, government, community and volunteer associations, business and professional groups, educational institutions, and visitors bureaus.

Founded in 1995, Zip2 Corp. in Mountain View, CA, is a provider of customized, turnkey package of city site products and data integration solutions that include arts and entertainment guides, online yellow pages/business directories with access to over 16 million business nationwide, mapping and door-to-door directions, auto and home finders, as well as community self- publishing.

The company’s local sales and marketing teams work with its network of local media companies, especially newspaper companies, to facilitate local sales of online advertising and build revenue for its local city guides. Partners include The New York Times, Knight-Ridder, Landmark Communications, Morris Communications, McClatchy Newspapers, Central Newspapers, and newspapers in the Hearst, Times Mirror, Scripps Howard, Media General, Pulitzer Publishing and Freedom Communications chains.