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.