General Electric Co’s NBC has taken a 20% stake in ValueVision International Inc worth around $56m, and says it wants to explore the development of future internet and electronic commerce opportunities with the company. ValueVision operates the third largest television home shopping network in the US, reaching around 21m homes.
Under the deal, NBC will take charge of all ValueVision’s cable and affiliate relations, and will help ValueVision increase the quality of its programming. NBC says it will also help ValueVision redesign its current internet shopping website – at vvtv.com – and explore the possibilities of linking their various internet properties as part of the new alliance.
The two intend to rebrand ValueVision’s television home shopping network in conjunction with an internet portal. NBC says there is the potential for a significant electronic commerce partnership through interactive cable boxes and internet portals.
NBC is the first major broadcast network to sign such a deal, although the proposed Lycos/USA Networks merger similarly hopes to match the Lycos portal site with the USA Networks-owned Home Shopping Network. HSN reaches over twice as many homes as ValueVision, and is number two in the market after QVC Inc, which reaches 68 million homes through the QVC channel.
