Internet research companies Media Metrix and Jupiter Communications both saw their stocks decline Tuesday after the companies revealed plans to merge.
Shares of Media Metrix fell 17 percent, or $4.88, to $23.38 per share, while Jupiter shares slipped 8 percent to $21.06.
The proposed stock deal, originally valued at about $368 million, is expected to close in three months.
Under terms of the deal, the merged company, which will be called Jupiter Media Metrix, will have a combined market value in excess of $1 billion, the companies said.
"The new company will accelerate the development of products and services, efficiently reach new customers and markets, and rapidly extend its leadership position worldwide--providing increased value for clients, employees and shareholders," says Tod Johnson, chairman and CEO of Media Metrix, in a prepared statement.
Johnson will become chairman and CEO of the new company, with Gene DeRose, Jupiter's chairman and CEO, serving as president and vice chairman.
Mary Ann Packo, president and COO of Media Metrix, and Kurt Abrahamson, president and COO of Jupiter, will become co-chief operating officers of Jupiter Media Metrix while continuing as presidents of their respective business units.
Tom Lynch, CFO of Media Metrix will become the new company's CFO, while Jean Robinson, Jupiter's CFO, will become executive vice president of business development.
The new company's stock will trade under the symbol "MMXI" on Nasdaq.
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