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NBCi in $70M Net pact
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December 20, 1999: 8:29 a.m. ET
Teams with Telocity, GE and ValueVision to offer Web access
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NEW YORK (CNNfn) - NBC Internet Inc. and Telocity Monday unveiled a $70.5 million broadband alliance under which the companies will jointly deliver multimedia Internet services to homes nationwide.
Under the terms of the deal, NBCi (NBCI), NBC, GE Equity (GE) and ValueVision (VVTV) will invest a combined $70.5 million in cash, television promotion and online marketing in exchange for a 19.5 percent stake in Telocity.
The NBCi's Snap/Telocity co-branded broadband service is slated to launch nationally in 2000 and will feature entertainment, shopping, games, communications applications and community services. Additional services designed specifically for broadband will also be provided, including video, audio and other media rich content, delivered via Telocity's high-speed service.
Telocity will receive $37.5 million in cash and $33 million in NBCi and NBC television and online promotion. Edmond Sanctis, NBCi's president and chief operating officer has also been named to Telocity's board of directors.
Including its equity deals with NBCi, NBC, GE Equity and ValueVision, Telocity Monday also announced the completion of a new round of financing valued at $127.5 million
Cupertino, Calif.-based Telcocity is an Internet-subscriber provider (ISP) that provides high-speed DSL (Digital Subscriber Line) Internet access and has partnered with BellSouth to provide high-speed ADSL (Asymmetrical Digital Subscriber Line) to Internet users.
"This alliance demonstrates the power of the
NBC family to get behind an emerging technology and offer it though NBCi, our primary consumer
Internet initiative,” said Marty Yudkovitz, president of NBC Interactive Media.
NBC owns 47.3% of NBCi, the company’s Internet portal and e-commerce service and holds equity stakes in CNET, (CNET) Talk City, iVillage (IVIL), Telescan, 24/7 Media, TiVo, Wink Communications, Gemstar, Intertainer and other new media companies.
On Friday, shares of NBCi closed up slightly, 1/2 to 70-7/8. 
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