NEW YORK (Dow Jones)--General Electric Co.'s (GE) NBC unit is working on a joint venture with a
prominent Internet company, as well as the possibility of spinning off its Web holdings, according to a
report in the New York Post.
The television broadcast network is likely to create a joint venture with America Online Inc. (AOL),
Yahoo! Inc. (YHOO) or Lycos Inc. (LCOS), according to the Post report, which cited a story
published in the Electronic Media trade paper. Also, the network may spin off its $2 billion worth of
Web holdings as early as this spring, offering the public a 20% stake.
NBC and Yahoo could not be reached for comment. Spokespeople for Lycos and AOL declined to
comment, stating company policies against responding to rumors.
NBC is also in talks with Road Runner, a high-speed Internet access company. Road Runner is a joint
venture of Time Warner Inc. (TWX), MediaOne Group (UMG), Microsoft Corp. (MSFT), Compaq
Computer Corp. (CPQ) and Advance/Newhouse.
The deal would allow NBC to provide news content from its MSNBC and CNBC cable television and
online outlets to Road Runner, said Sandy Colony, spokeswoman for Road Runner.
NBC officials could not be reached for comment.
An AOL spokeswoman declined to comment. Officials from Yahoo and Lycos were unavailable for
comment.
NBC has been concentrating more of its attention on Internet holdings, eagerly looking for chances to
diversify in the face of falling television ratings and declining profits from its main broadcasting
business.
A spinoff of its Internet access would allow NBC to profit from the public's craze for Internet stocks,
providing a rich cash resource for acquisitions, according to the Post report.
NBC already owns part of CNet Inc.'s (CNET) Snap!, an Internet directory, and holds investments in
Intertainer and iVillage. The network has also diversified into cable television with CNBC, a business
news network, and MSNBC, a general news network.
Kassie Canter, spokeswoman for NBC, decline to comment on the New York Post story, adding only
that the network "has been extremely aggressive in the Internet area and we will continue to be." -
Johanna Bennett; 201-938-5670
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