GE Buys Stake in ValueVision

Share this content:
The General Electric Company, New York, owner of the NBC television network, announced last week it would become a minority shareholder in ValueVision, the nation's third largest cable home-shopping channel which is currently available at various times in about 22 million U.S. homes.


The move represents GE's first step toward bringing an influential shopping network presence into NBC's operational domain further raising the stakes by big media companies hoping to increase their prospects for conducting business in the rapidly converging online and cable shopping worlds


In published reports Tom Rogers, president of NBC's cable division said "As the TV and PC converge, access to electronic revenue streams like home shopping through cable and Internet will become extremely valuable,''


Analysts say GE is buying into Valuevision in an effort to make NBC more strategically viable as emerging new competitors such as the proposed merger of USA Networks and Lycos Inc., become more common.


ValueVision which its 8th year of operation, saw sales figures drop last year by 13% despite continuous annual reports of increased profits and revenue. Under the proposed agreement announced last week, GE will invest $56 million in ValueVision giving it a 19.9 percent ownership. The deal also gives GE the opportunity increase its ownership at a later date to as much as 39.9 percent.


The network's influence and likely ability to bring ValueVision to the next level as a force to be reckoned with undoubtedly brings increased competitive pressures to the door steps of the nation's two leading cable shopping networks, QVC and Home Shopping Network.


NBC is expected to help ValueVision develop more quality programming and production standards as well as a redesigned Web e-mail, news, chat and other services - effectively making it an Internet portal.


GE's NBC currently owns two other cable company networks as well including CNBC and through its joint venture with Microsoft Corp, the all-news MSNBC channel.
Loading links....

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here