NBC has completed its $85 million purchase of NBC Internet Inc., which operates the NBCi.com Web site. The San Francisco-based company’s shares have declined 78% as losses have mounted.
NBCi, founded in 1999 as a portal to compete with Yahoo and Disney’s Go.com, was hit hard by the souring advertising market, which represented 44% of the division’s revenues. It had a loss of $1.92 billion in the first quarter alone.
NBC paid $2.19 for each share of NBC Internet and also stopped trading of the company’s stock. NBC had owned 39% of NBC Internet.