Re: NBCU buys control of MSNBC
- From: Taylor <taylor.taylor@xxxxxxxxx>
- Date: Fri, 23 Dec 2005 16:03:58 -0500
evwill@xxxxxxx wrote:
(From the NBC Universal press release) http://nbcumv.com/release_detail.nbc/corporate-20051223000000-nbcuandmicrosoft.html
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NBC Universal and Microsoft Agree to MSNBC Cable News Channel Restructuring
NBC Universal Sees Greater Integration of MSNBC Channel with NBC News
NBC Universal and Microsoft Remain Committed to Fast-Growing Internet Joint Venture MSNBC.com
NBC Universal and Microsoft today announced a restructuring of the MSNBC cable news channel. Under the terms of the new agreement, NBC Universal has acquired a controlling interest in MSNBC and an option to acquire 100% of the cable channel within two years. NBC Universal and Microsoft have also reaffirmed their strong commitment to MSNBC.com, which will remain equally owned by both parties. Terms were not disclosed
"Acquiring a controlling interest in MSNBC will allow us to fully integrate the channel into our News operations and our overall cable platform. MSNBC is a critical component of NBC News' success and has made some key viewership gains in recent months," said Steve Capus, President, NBC News, NBC Universal. "Our partnership in the nation's leading cable and broadcast news website, MSNBC.com, keeps us on the leading edge in the online world. This combination of assets is unrivaled in network news, and we look forward to continuing a productive relationship with Microsoft for many years to come."
"Together, Microsoft and NBC Universal have grown MSNBC.com to the No. 1 news site," said Bruce Jaffe, Corporate Vice President, Microsoft. "We are totally committed to taking MSNBC.com to even higher levels of success through our unparalleled marriage of technological innovation and news content."
MSNBC has been increasing its share of the cable news audience in the target demographic over the last half of 2005. In November MSNBC had a 20 percent share of the audience in the evening hours, only 4 share points behind CNN. This represents the smallest gap in nearly three years.
In November 2005 MSNBC.com drew 22.3 million unique visitors and, for
the tenth straight month, topped all other broadcast and cable news
websites including CNN.com, according to Nielsen//Net Ratings. Since
March 2005 MSNBC.com has averaged 24 million unique visitors, more than
the combined unique visitors of ABCNews.com, CBSNews.com and
FOXNews.com.
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http://www.hollywoodreporter.com/thr/article_display.jsp?vnu_content_id=1001737223
Dec. 24, 2005
NBC Universal takes controlling interest of MSNBC
By Paul J. Gough
NEW YORK -- NBC Universal has acquired a controlling interest in MSNBC, ending speculation about the fate of Microsoft's interest in the perennially third-place cable news channel.
Financial terms of the deal weren't announced, but an executive familiar with the deal said Friday morning that NBC Universal will now own 82% of MSNBC, while Microsoft will own 18%. Both companies have owned 50% each of MSNBC ever since 1996. NBC Universal has an option to acquire the rest of Microsoft's stake in MSNBC within two years.
MSNBC.com, which unlike the cable channel has a leading position in online news, will remain jointly owned by both companies.
NBC Universal said that it didn't expect to make any immediate personnel or strategy. There are also no immediate plans to rebrand the channel, although in July then-NBC News President Neal Shapiro acknowledged that plans were in the works to do so at some point in the future.
MSNBC was launched in July 1996 as a joint venture with a $420 million investment by Microsoft and NBC. Microsoft agreed to fund half the operating expenses for both the channel and the Web site. Both companies had put more money into the channel, and its growing Web site, since then. It turned its first profit in July 2004.
Both had grown disenchanted by the channel's failure to unseat CNN and, with the rise of Fox News Channel, its slip to third place. In recent months, it has fallen to fourth place in primetime after a rebranding by CNN Headline News. MSNBC is available in 83 million households.
In 2001, Microsoft CEO Steve Ballmer told Reuters that if they had to do it over again, the company wouldn't be involved in MSNBC. Yet Bill Gates has said several times in the past that he had no interest in changing the relationship.
A source familiar with the deal said the companies had been talking on and off for about a year. But talks restarted again in September and October, and the deal was closed just recently.
The agreement fits into both companies' long-term strategies. Microsoft has long wanted to get out of the content business, selling its online magazine Slate to The Washington Post a year ago. NBC Universal, on the other hand, is a leader in content and has wanted to have greater control over the cable channel. It has done a similar thing with CNBC.
NBC has always had control over programming on the channel, with forays into joint efforts like "Connected Coast to Coast" dying quietly. But the structure of the joint venture has prevented NBC Universal from realizing costs savings in back-office and financial reporting. Those barriers have now been replaced.
But both companies were happy with the way things were working with MSNBC.com.
"That venture works very well as it is today, with NBC News contributing the news and content, Microsoft contributing the technology and the online marketing. There really wasn't an interest in changing that," the executive said.
© 2005 VNU eMedia, Inc. All rights reserved.
http://groups.yahoo.com/search?query=nbcnewschannel .
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