RCN Corp's JuniorNet Confirms Pact With PBS Stations
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BOSTON -(Dow Jones)- RCN Corp.'s (RCNC) majority-owned JuniorNet Corp.
unit confirmed it will give owners of 20 member stations of the Public
Broadcasting Service an equity stake in the firm in exchange for
promotion, distribution and outreach services.
Financial terms weren't disclosed.
In a press release Tuesday, JuniorNet said Maryland Public
Broadcasting Foundation Inc., Nebraskans for Public Television Inc. and
South Carolina Educational Communications Inc. received equity stakes as
well as a co-branding opportunity.
The Wall Street Journal reported Tuesday that the deal is believed to
the first time PBS stations have traded beneficial air time for stock in
a public company.
The Journal also said insiders have suggested that JuniorNet plans an
initial public offering in the future.
In its press release, JuniorNet said the stations will promote
JuniorNet Online Service to schools and homes and receive warrants for
JuniorNet stock in relation to the number of households in their
coverage area, as well as for a percentage of the home subscription
revenue they generate within their market.
The online service, which costs $9.95 a month, features online games,
entertainment intended to be educational and stories culled from other
media, including "Highlights for Children," "Ranger Rick," and "Sports
Illustrated for Kids."
According to The Journal, PBS gets about one-third of its $1.5 billion
in annual revenue from federal and state governments, another 23% from
member donations and the rest from corporate sponsorships.
JuniorNet didn't speculate about how much revenue the deal might
generate for PBS or the member organizations that have already signed
on.
JuniorNet also confirmed it will offer PBS stations a television
series produced by its Lancit Media Entertainment Ltd. unit. The series,
as yet untitled, will be designed to introduce children to the Internet,
the company said.
The Journal reported that RCN Corp. paid JuniorNet $22 million for a
majority stake last year and transferred Lancit Media to JuniorNet as
part of the deal. Euclid Partners, Boston Capital Ventures and New World
Ventures also put up $23 million for a minority stake.
JuniorNet Web site: juniornet.com.
-Jason Overdorf; Dow Jones Newswires; 201-938-5400
(This story was originally published by Dow Jones Newswires)
Copyright (c) 2000 Dow Jones & Company, Inc.
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