NBC to Rein in NBCi Internet Subsidiary

Share this article:
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.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.