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CBS tight with Wrenchead
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August 16, 1999: 11:15 a.m. ET
CBS looks to accelerate online, TV offerings with auto supply site stake
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NEW YORK (CNNfn) - CBS Corp. said Monday it would seek to rev up its online holdings by picking up a partial stake of Wrenchead.com, an Web-based automobile parts and supplies retailer.
CBS (CBS) will get a 22 percent equity stake in Wrenchead and in exchange, the auto site will receive $33 million worth of advertising, promotion and other consideration over four years on CBS' various media properties.
CBS' majority-owned Infinity Broadcasting (INF), a radio and billboard advertising firm, will get a share of the investment as well.
CBS already has a stable of popular Web sites, including SportsLine USA, Medscape and MarketWatch.com.
In addition to Wrenchead's online presence, the television company hopes to develop automotive-related programming for CBS' country lifestyle channel TNN, which hosts a range of motor sports programming already.
Wrenchead sells auto and truck parts and plans soon to offer other automotive accessories as well. It also has plans to launch an automotive news service.
Shares of CBS were down 3/16 to 44-13/16 in mid-morning trading Tuesday.
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