NBC to Rein in NBCi Internet Subsidiary
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.