NBC to Rein in NBCi Internet Subsidiary

Share this content:
NBC has decided to buy back and fold NBCi, its independent Internet subsidiary, into the rest of the company's operations and may eliminate the 300 jobs associated with the portal.


NBC said yesterday that shareholders will receive $2.19 in cash for each share of NBCi. The purchase will cost NBC about $85 million in cash. NBCi was valued at about $150 million.


General Electric Co., which owns NBC, had a 38.6 percent stake in NBCi.


The Internet subsidiary posted a net loss of $245 million on revenue of $31 million in fourth quarter 2000.


NBC said it was in the process of determining how to use NBCi's assets and would develop a strategy for the Web properties over the next several months.


"Recent changes in the portal space and the Internet advertising market have caused us to re-examine this initiative," said Bob Wright, vice chairman of General Electric Co. and president/CEO of NBC.


NBCi debuted in November 1999 through the merger of NBC and CNET's jointly owned Snap.com and Xoom.com, as well as other NBC-owned properties.


Loading links....
close

Next Article in Digital Marketing

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

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