CBS said Wednesday it will take a 30% stake in online conglom Big Entertainment, instead of the previously reported 35% in Big’s film Web site Hollywood.com.
The Eye’s equity stake in Boca Raton, Fla.-based Big comes in the form of $105 million of advertising, promotion and content from CBS’ radio, television and outdoor advertising properties over the next seven years.
The hope is for CBS to put its marketing muscle behind Big’s Web sites and make them household names in the same way it has promoted its partly owned CBSSportsLine and CBSMarketWatch Web sites.
The promotion of Hollywood.com is expected to kick off in the fall.
Further stake possible
As part of the new deal, CBS will receive a warrant to purchase an additional 5% of Big Entertainment. It will hold three seats on Big’s board of directors.
Completion of the deal is subject to approval by Big’s shareholders.
In April, CBS said it would take a 35% stake in Hollywood.com via $100 million in promotional support over seven years. The new deal has CBS investing directly in Big rather than its subsid.
Big and CBS struck that deal just two months after Big agreed to buy Hollywood.com from Times Mirror for $31 million in stock.