NBC to acquire NBCi
Published: 09 Apr 2001 14:16 BST
Network giant NBC on Monday said it has entered into an agreement to acquire all of NBCi, an Internet portal and media company, for about $85m.
The broadcasting company is currently a minority shareholder in NBCi, with approximately 38.6 percent of the company's outstanding shares. Under the terms of the agreement, other shareholders of the Internet portal company will receive $2.19 for each share of NBCi that they own. This price represents a 46 percent bonus over NBCi's closing price of $1.50 on Friday, the company said in a statement.
NBC executives said the decision to acquire the company's former subsidiary is a response to market volatility.
"Recent changes in the portal space and the Internet advertising market have caused us to re-examine this initiative," Bob Wright, vice chairman of General Electric and chief executive of NBC, said in a statement. "This acquisition will enable us to build on our competitive advantage in the Internet arena while leveraging our core competencies as a network."
NBCi has seen some tough times lately as the Internet industry has struggled. It announced layoffs in January, and it has seen its stock price tumble from a 52-week high of $42.87.
NBC is trying to determine how to make use of NBCi's assets and expects to develop its strategy for these Web properties over the next several months.
"This transaction lays the groundwork for future decisions about our online presence," Mark Begor, chief financial officer of NBC, said in a statement. "This begins the next phase in the evolution of our Internet strategy as we seek to build successful models like MSNBC.com, the number one news site on the Internet, and CNBC.com."
See techTrader for technology investment news, plus quotes and research.
Have your say instantly, and see what others have said. Click on the TalkBack button and go to the techTrader forum
Let the editors know what you think in the Mailroom. And read what others have said.
Did you find this article useful?
49 out of 94 people found this useful
- Share this article:
