NBC, New York, is merging several of its key Internet sites with online direct marketing community Xoom.com, San Francisco, to form a company called NBC Internet. NBCi will use the Snap portal, which NBC co-owns with CNET, as an umbrella site, tying together e-commerce, online community features and NBC programming content. Other sites merged under NBCi include NBC Interactive Neighborhood, Videoseeker.com and a 10% ownership of CNBC.com, which is to be launched this summer. NBCi will buy $380 million in NBC-TV network advertising over the next four years, and an additional $500 million over the following six years. MSNBC isn't part of the deal. When the transaction closes, NBC will own a 53% stake in NBCi, CNET will own 13% and Xoom.com shareholders will own a 34% stake.
Copyright May 1999, Crain Communications Inc.