The internet broadcasters are forming
biz.yahoo.com
NBC Merges Internet Properties With Xoom.com and Snap.com to Form NBC Internet (NBCi)
Resulting Web Site to be Branded Snap.Com -- 7th Largest Site . NBC to Merge NBC.com, NBC's Interactive Neighborhood, Videoseeker, and 10 Percent of CNBC.com With XOOM.com And Snap.com . Merger Creates First Publicly Traded Internet Company Integrated With a Major Broadcaster
NEW YORK, May 10 /PRNewswire/ -- CNET (Nasdaq: CNET - news) and XOOM.com, Inc. (Nasdaq: XMCM - news) announced today that NBC will merge several of its key Internet assets with XOOM.com and Snap.com 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 be NBC's exclusive general portal/community/e-commerce Internet commitment. The new company will use Snap as its umbrella consumer brand, integrating broadcast, portal, and e-commerce for more than 18 million unique users per month.
NBCi will consist of NBC and CNET's Snap.com, the fastest-growing Internet portal and the first to launch a broadband service; XOOM.com, the fastest-growing community-based site on the Web and a leading direct e-commerce company; and several NBC-owned Internet properties. These properties include NBC.com, NBC's Interactive Neighborhood (IN), Videoseeker.com, and a 10 percent ownership stake in the new CNBC.com which will be launched later this summer. NBC and NBCi have entered into an agreement for NBCi to acquire $380 million in NBC TV Network advertising over the next four years and they have targeted an additional $500 million in advertising over the following six years.
In addition to high-quality free Web services such as search and navigation services, a directory of Web sites, home page building, chat rooms, downloadable software, message boards, and greeting cards, NBCi will offer innovative NBC content, including certain full motion video programming, original extensions of NBC shows, including sites for ''Saturday Night Live'' and ''The Tonight Show with Jay Leno,'' and localized community guides connected to local NBC stations. NBCi will be supported by transaction and advertising revenues.
Bob Wright, President and CEO of NBC will become the Chairman of the NBCi Board. Chris Kitze, the Chairman of XOOM.com will become President and CEO of NBCi.
At the conclusion of the merger, NBC will own a 49.9 percent stake in NBCi and will name directors to six of the 13 board seats. NBC will also purchase a convertible debt instrument which, if converted at a future date, could result in additional ownership of NBCi and the ability to name a majority of the board. Assuming conversion of the debt instrument, NBC would own a 53 percent stake, CNET would own an approximate 13 percent stake, XOOM.com shareholders and its option holders would own a 34 percent stake.
Jack Welch, Chairman and CEO of General Electric (NYSE: GE - news), NBC's corporate parent, said, ''The Internet is revolutionizing the face of business. At GE we are moving every day to reinvent the ways we can grow our businesses with new e-commerce applications. The merging of key assets from NBC, Snap and Xoom expands our position as an Internet portal provider with unlimited growth potential.''
Bob Wright, President and CEO, NBC, said: ''NBC has historically been at the forefront of new communications technologies, and with this merger, NBC demonstrates its deepening commitment to Internet communication. This merger brings together two of the fastest growing Internet sites and the number one broadcast network into a powerful new Web presence. Integrating NBC's content and promotional strengths with XOOM.com's expertise in direct e-commerce and Snap.com's navigational strengths will result in a unique online company that will stand out in the crowded Internet world.''
Tom Rogers, President NBC Cable and Executive Vice President, NBC, said: ''This merger will result in an exciting company for investors and consumers alike. It creates a unique public company, NBCi, which will be NBC's exclusive general Internet portal, and through the integration of all these Internet properties provide a major new all-purpose site, that is exceptionally well-positioned for the broadband world to come.''
Chris Kitze, Chairman and Co-Founder of XOOM.com, said: ''Partnering with such a strong media partner as NBC is a clear win for XOOM.com shareholders. NBCi will be a pure Internet play that will maximize XOOM.com's direct e-commerce platform. We have built two strong revenue streams in e-commerce and advertising and have proven that we can convert Internet users into buyers.''
Marty Yudkovitz, President of NBC Interactive, said: ''To users this means that they will only have to go to one place snap.com on the web to search, chat with users of like interest, e-mail, receive faxes, watch videos, create their own web page, personalize their homepage, and purchase products.''
Halsey Minor, CEO of CNET added, ''When we started Snap.com two years ago, never in our wildest dreams could we have imagined that it would work out so well. As investors, we are very encouraged by the promotional might behind NBCi and the outstanding growth potential for Snap.com.''
MSNBC.com, the leading general news site on the Internet, is not part of the transaction and will remain a 50-50 joint venture between NBC and Microsoft, Inc. Snap.com will continue to give MSNBC.com premium positioning on the new merged site. CNBC.com, the general finance and personal investment portal scheduled to launch this summer, will have a preferred direct commerce relationship with the new company.
Less than one year ago, NBC significantly expanded its online presence with a 19 percent equity investment in CNET's Snap Internet Portal, marking the first entry of a major media company and broadcast network into the Internet directory and search services business. Since that time, Snap.com has grown from the 43rd to the 11th ranked Internet property, with 9.75 million unique visitors per month, according to Media Metrix. XOOM.com has 9.69 million unique visitors per month, according to Media Metrix, making it the 12th ranked Internet property.
The merger transactions are expected to be completed by year-end 1999 and are subject to customary closing conditions.
''XOOM,'' ''XOOM.com'' and the ''X-in-circle'' logo are trademarks of XOOM.com, which may be registered in certain jurisdictions. This press release contains statements that are forward looking. These statements are based on our expectations of our future results as of the date of this press release. Actual results may differ materially from those projected because of a number of risks and uncertainties, including those listed from time to time in XOOM.com's SEC reports including but not limited to the report on Form 10-K for the year ended December 31, 1998 and the registration statement on Form S-1. Important factors that could cause the results to differ materially from those in any such forward-looking statements include: our limited operating history; unpredictability of our quarter-to-quarter results; our unproven business model and dependence on members; risks associated with our international operations; our reliance on our network infrastructure; our dependence on vendors and suppliers; management of our growth and expansion; risks associated with brand development; our reliance on advertising revenue; intense competition with other Web communities and businesses; the risks of infringement of intellectual property rights; risks associated with acquisitions; and reliance on strategic relationships.
If Bramson needed a wakeup call, here it is. Time to move FASTER, no matter how fast Bramson is moving now. If you can't move fast enough alone, partner up with players that can. Agree that GNET or CBS are possibilities, others may exist as well.
I only hope that Bramson is not trying to go it alone- that would be a major strategic error. For those going to shareholders meeting, please press Bramson on this point- no specifics will be forthcoming, I am sure, but at least growth philosophy should be outlined, esp. re:possible mergers/partnerships. |
