Peacock adds $25 mil to $30 mil cash investment
HOLLYWOOD — NBC has increased its stake in Xoom.com, investing another $25 million in the Internet media company.The Peacock announced last month it will fold its Internet operations and those of CNET into NBC Internet (NBCi), which it plans to turn into a $4 billion publicly traded company (Daily Variety, May 11). NBC had already committed to a $30 million cash investment in Xoom.com and more than $800 million in advertising support for the new joint venture, with portal Snap.com as the umbrella brand. NBC will continue to own over 49% of NBCi upon the closing of the deal and will retain the right to name directors to six of the 13 board seats. CNET would continue to own about 13%; Xoom.com shareholders and its option holders would own 33%. “NBC’s $55 million investment demonstrates our increased commitment to Xoom.com and NBCi,” said Tom Rogers, prexy NBC Cable and exec VP of NBC. “NBC’s additional cash commitment to Xoom.com is a loud and clear message to our stockholders that NBC is fully behind this new venture,” said Chris Kitze, chairman and co-founder of Xoom. The merger to form NBCi is expected to be completed by October.