*****NEWS!!!************
July 07, 1999 16:30
NBC and GE Equity Increase Stake in ValueVision to
39.9% Through Additional $175 Million Equity
Investment
NEW YORK, July 7 /PRNewswire/ -- NBC and GE Equity (NYSE: GE) announced
today that they have increased their stake in ValueVision International, Inc.
(Nasdaq: VVTV) to 39.9% by exercising their warrants and purchasing
approximately $175 million of stock.
Founded in 1991, ValueVision is a leading electronic and print media direct
marketing company. It operates the third largest television home-shopping network
in the United States. Earlier this week, ValueVision announced long-range,
multi-year carriage agreements with DIRECTV and EchoStar to increase its reach
from 15 million households to approximately 23 million full-time equivalent
subscribers. In March 1999, NBC, GE Equity and ValueVision entered into a
strategic alliance designed to help increase the cable distribution of ValueVision's
television home-shopping network and to jointly explore the development of future
Internet and electronic commerce opportunities. At that time, NBC and GE Equity
purchased 19.9% of ValueVision for approximately $44 million in the form of
preferred stock and received one seat each on ValueVision's board.
"We are very pleased with ValueVision's progress and with our role in helping to
drive the channel's distribution," said Stuart Goldfarb, Executive Vice President and
Managing Director, Worldwide Business Development, NBC.
Added Tom Rogers, President NBC Cable and Executive Vice President, NBC: "In
a world of increasing convergence, the importance of electronic shopping
opportunities via the television should grow dramatically."
"We have been very satisfied with our investment in ValueVision and are proud to
increase our interest in this exciting company," said Michael Pralle, President, GE
Equity.
"This alliance with NBC and GE Equity now, further enhanced by this commitment,
better positions ValueVision to accelerate our emergence as a leader in the
convergence of television and Internet commerce," said Gene McCaffery,
Chairman, Chief Executive Officer and President of ValueVision.
McCaffery added, "A 50% increase in household carriage, over a quarter billion in
cash, no debt, great partners and an innovative differentiating strategy bodes well
for ValueVision's future."
About ValueVision
ValueVision International, Inc. is an integrated electronic and print media direct
marketing company, and operates a television home-shopping network and
multi-book catalog operation. The Company offers live programming 24 hours per
day, 7 days a week. As of July 31, 1999, approximately 23 million homes were
able to receive ValueVision's programming. In addition, the Company operates
several direct mail operations and an Internet shopping Web site
(http://www.vvtv.com). The Company's shares are traded on the Nasdaq Stock
Market under the symbol VVTV.
For additional information on ValueVision please visit the Company's web site at
vvtv.com or by fax, at no cost, dial 1-800-PRO-INFO, and enter code
VVTV.
About NBC
NBC is a global media company with broadly diverse holdings. NBC owns and
operates the NBC Television Network as well as thirteen television stations. In the
United States, NBC owns CNBC, operates MSNBC in partnership with Microsoft,
and maintains equity interests in Arts & Entertainment and The History Channel.
NBC also has an equity stake in Rainbow Programming Holdings, a leading media
company with a wide array of entertainment and sports cable channels, including
the Madison Square Garden network, and ValueVision International. Internationally,
NBC owns and operates CNBC: A Service of NBC and Dow Jones in partnership
with Dow Jones & Company in Europe and Asia. In partnership with National
Geographic and Fox/BskyB, the network owns and operates the National
Geographic Channel in Europe and Asia.
The leader among traditional media companies in Internet and new media
businesses, NBC holds equity stakes in CNET, Talk City, iVillage, Telescan,
Hoover's and 24/7 Media. Several of NBC's Internet assets are slated to be merged
with Snap.com, the fastest-growing Internet portal, and XOOM.com, Inc. (Nasdaq:
XMCM), the fastest-growing community-based site on the Web and a leading direct
e-commerce services company, to form the seventh-largest Internet site and the
first publicly traded Internet company integrated with a major broadcaster. The new
company, to be called NBC Internet (NBCi), will use Snap.com as its umbrella
consumer brand, integrating broadcast, portal, and e-commerce services. With
Microsoft, NBC owns and operates MSNBC, a 24-hour cable news network and
Internet news service at msnbc.com. Also, together with Microsoft and
Dow Jones, NBC operates CNBC/Dow Jones Business Video, offering video- and
audio-based financial news and information to financial professionals and
institutions. Other new media innovations from NBC include interactive television
initiatives with Microsoft WebTV for Windows and WebTV Plus, TiVo,
Wink-enhanced programming with Wink Communications, NBC Intercast with Intel,
electronic program guides with Gemstar and on-demand video services with
Intertainer.
About GE Equity
GE Equity, a subsidiary of GE Capital, is the private equity arm of GE, and has
over 40 diversified investments in Internet and e-commerce companies. These
include: iXL, CFN, Realtor.com, StarMedia, Preview Travel, autobytel.com and
others.
GE Capital, with assets of more than US$300 billion, is a global, diversified
financial services company with 28 specialized businesses. A wholly-owned
subsidiary of General Electric Company, GE Capital, based in Stamford, CT,
provides equipment management, mid-market and specialized financing, specialty
insurance and a variety of consumer services, such as car leasing, home
mortgages and credit cards, to businesses and individuals around the world. GE is
a diversified manufacturing, technology and services company with operations
worldwide.
SOURCE NBC
/CONTACT: Jeff DeMarrais of NBC, 212-664-3505; Marjorie Ornston of FRB,
310-442-0599; or Marcy Brucellaria of GE Capital, 203-961-2281/
/Web site: nbc.com |
