Sears To Sell Stake In Prodigy

Sears, Roebuck & Co. announced Wednesday it will sell its 50 percent stake in Prodigy Services Co., the nation’s third-largest online service, to focus on retailing.

“Prodigy does not fit into Sears’ long-term strategy for growth. We are seeking a buyer for Sears’ share in the company,” Arthur C. Martinez, Sears chairman and chief executive, told financial analysts in New York.

Prodigy, created in a joint venture between Sears and IBM Corp. in 1984, helped build the online industry and now has 1.5 million subscribers. But the company has been slow to adapt to user preferences and has been overtaken by America Online and CompuServe.

Sears reportedly began seeking several months ago to sell its stake, either to IBM or another buyer. After lowering its expectations, the retailer now is asking for about $300 million, said Peter Krasilovsky, senior analyst for Arlen Communications, a consulting firm for new media.