Under the terms of the deal, 550 Digital Media Ventures will make a $5 million investment in eUniverse and have a seat on its board, and eUniverse will buy InfoBeat, which operates a news and entertainment email service for $9.94 million. Euniverse also has the option to convert a $2.1 million note into equity.
InfoBeat had been part of Indimi, a unit of 550 DMV concentrating on online direct marketing. Euniverse and 550 DMV also said they will be exploring ways for Sony properties to be marketed and distributed through eUniverse. -- Catharine P. Taylor
Copyright July 2001, Crain Communications Inc.