Here is an example of what Ampex's stakehold in the convergence industry may evolve into. While the press release deals with E-Commerce in the current Internet wave, the next wave of narrowcasting and broadcasting through convergence could catch Ampex through either it's backbone equipment and know how or through its narrowcasting and production alliances.
NBC, GE Equity buy 19 percent stake in Valuevision
March 9, 1999 08:04 AM
NEW YORK, March 9 (Reuters) - Home shopping network operator ValueVision Inc. VVTV said on Tuesday two General Electric GE units,
including NBC, took a $56 million, 20 percent stake in ValueVision in a bid for both parties to boost online and television profits.
The agreement was branded as an alliance to increase cable distribution of ValueVision's TV network. The deal provides access to interactive
cable boxes and Internet portals, allowing the companies to cross-promote products on both television and computer screens.
NBC, which also runs cable news networks MSNBC and CNBC, said the transaction positions it to boost electronic commerce-generated
revenues.
Under the deal, NBC and GE Equity will buy a fifth of ValueVision with preferred stock and common stock warrants. In exchange, the GE units
will both have one seat on ValueVision's board and the chance to hike their equity stake to 39.9 percent of ValueVision. Other financial terms
were not disclosed.
The broadcast giant will handle ValueVision's cable and affiliate relations and redesign ValueVision's home shopping network and Web Site
(http://www.vvtv.com), which now offers its schedule of products for sale on TV.
About 21.8 million homes can tune into ValueVision's programming, the Minneapolis-based marketing company said. ValueVision's stock has
steadily climbed since October hitting a high of $15.81 in December after posting a 70 percent boost in pre-Christmas sales. The company also
settled a lawsuit that month with the entertainment unit of media giant Time Warner Inc. TWX over a New York area station.
Ed Perry |
