Updated: Leading online women’s site iVillage has been on the market for a while and it finally found the right fit—at a price that’s a couple of hundred million lower than what we originally heard was being sought. NBC Universal will pay $8.50 a share to acquire 100 percent of iVillage; that comes to about $600 million. It’s the first major internet acquisition for NBCU in some time and the biggest move for digital media since Beth Comstock was appointed president of NBCU Digital Media and Marketing late last year. They’re looking for a 2Q06 close pending shareholder and regulatory approval. Some highlights from the press release:
-- “With the addition of iVillage, NBC Universal expects to grow the company’s digital revenues to approximately $200MM in 2006, and projects a 20% percent growth rate going forward.”
-- iVillage “capabilities” will be used to support existing digital ops and provide “significant cost synergies.”
-- iVillage’s healthcare position was a draw for GE; iVillage and GE Healthcare
will work on a “more customized consumer healthcare experience,” Comstock said.
-- the iVillage team will report directly to Comstock and continue to be based in NYC. Update: There are no plans to change the senior team, according to an NBC spokesperson.
Press release | Webcast (archived)
Related: Earnings: IVIL Net Income Triples In 4Q05; Revenues Up 65 Percent