CBS Corp. will acquire a 20% equity stake in privately held Rx.com, an online retailer of over-the-counter medications and healthcare products. In exchange, Rx.com will receive $37.5 million in advertising and promotion over four years across CBS' media properties, including TV, radio and outdoor. Infinity Broadcasting Corp., a majority-owned subsidiary of CBS Corp., will receive a pro-rata share of the investment. CBS will also receive warrants to purchase an additional 700,000 shares of the company's common stock. A representative of CBS Corp. will join Rx.com's board of directors.
Copyright July 1999, Crain Communications Inc.