We study the ideal structure of C*-algebras arising from C*-correspondences. We prove that gauge-invariant ideals of our C*-algebras are parameterized by certain pairs of ideals of original C*-algebras. We show that our C*-algebras have a nice property that should be possessed by a generalization of crossed products. Applications to crossed products by Hilbert C*-bimodules and relative Cuntz-Pimsner algebras are also discussed.
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