CMGI, Liberty Media Buy Into Primedia
Primedia also reached another deal with Liberty Media Corp. whereby the two firms would invest in each other and identify broadband video and interactive video applications for Primedia's content.
As part of the CMGI agreement,
Primedia will exchange 8 million shares, or approximately 5 percent of the media firm, for 1.53 million shares of CMGI
In the second deal, Liberty Media will pay $200 million in cash for a 5 percent stake in Primedia, 1.5 million warrants and the option for its Liberty Digital subsidiary to acquire a 12.5 percent stake in Primedia's newly formed Broadband Video unit.
Both deals seek to leverage Primedia's ability to generate content via its business-to-consumer and business-to-business media properties. In CMGI, Primedia partners with a large, diverse holding company with more than 65 Internet businesses that span across marketing, content and infrastructure channels. In Liberty Media and, more specifically, Liberty Digital, Primedia partners with a video programming, interactive television and Internet specialist.