<--OT-->(TSCN/GE) Any opinion?
Say Voltaire you seen this if so have you any opinion on this?Thanks in advance.
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GE'S NBC, GE Capital Buy 9.9% Stake in Telescan (Update2)
GE'S NBC, GE Capital Buy 9.9% Stake in Telescan (Update2) (Adds closing stock prices.)
New York, Jan. 15 (Bloomberg) -- General Electric Co.'s broadcasting and financial-services units paid $9.2 million for a stake in online data provider Telescan, as its NBC television network looks to enhance its Internet financial news service.
The second most watched TV network and GE Capital Corp. acquired 9.9 percent of Telescan, which is in talks to license its technology and a portion of its content to NBC, and to provide other technology services.
NBC wants to use Telescan to help it enhance CNBC.com, the online news and information service of its CNBC cable television news channel. NBC, whose ratings have fallen about 15 percent so far this season, is seeking to boost its presence online as more people divide their time between the TV and the Internet. ''The (TV) network is a relatively slow growth business, whereas the Internet is very exciting,'' said Michael Pralle, president of GE Capital's Equity Capital Group, which has made an estimated $50 million worth of investments in online businesses.
Houston-based Telescan develops and operates Internet sites and online networks serving the financial, publishing and entertainment industries. Paul Allen, co-founder of Microsoft Corp., owns about 12 percent of Telescan.
NBC and GE Capital's Equity Capital Group bought 1.2 million shares of Telescan at $7.70 each, in the private transaction. The investment is expected to add ''several million'' in additional annual revenue to Telescan, Pralle said.
GE Capital's initial motivation for making the investment was to profit from the Telescan-NBC relationship, although eventually it hopes to benefit more directly by building a more sophisticated Internet site for its consumer finance businesses, Pralle said.
NBC plans to pay a licensing fee to the company to use its online analytical and other tools for its CNBC site, Pralle said.
Telescan shares fell 3/4 to 15 1/4, reversing an earlier gain of as much as 23 percent. Shares of General Electric, which makes everything from jet engines to light bulbs, rose 3 11/16 to 100 3/4.
Stamford, Connecticut-based GE Capital, with assets of more than $280 billion, is a financial services company with 28 specialized businesses, including equipment management, specialty insurance and a variety of consumer services such as car leasing, home mortgages and credit cards.
Telescan and CNBC compete with Bloomberg LP, parent of Bloomberg News, in providing financial information. |
