NBC Universal to Acquire iVillage Inc.; Top Women's Online Community to Be Centerpiece of NBCU's Digital Strategy
06 March 2006 - 11:00PM
Business Wire
NBC Universal and iVillage Inc. (NASDAQ:IVIL) have signed a
definitive agreement for NBC to acquire iVillage, one of the
nation's most successful online destinations for women. The
acquisition was announced today by Bob Wright, Vice Chairman and
Executive Officer, General Electric; Chairman and CEO, NBC
Universal and Doug McCormick, Chairman and Chief Executive Officer,
iVillage Inc. NBC Universal will purchase 100% of the equity of
iVillage for $8.50 in cash per common share of the company for a
net cost of approximately $600 million. The transaction is expected
to close in the second quarter of 2006 pending shareholder and
regulatory approvals. With this acquisition, NBC Universal will
engage millions of loyal iVillage users, a community which mirrors
a key demographic of the NBC Universal audience - women. Every part
of NBC Universal, from television and film to home entertainment
will support and drive iVillage forward. From this platform, NBC
Universal will chart the next generation of digital content
development and enhance user experience. "As this transaction
demonstrates, we are committed to delivering content to consumers
through distribution systems both traditional and new," said
Wright. "Acquiring iVillage will enable us to bring our programming
to a large and passionate online community. We look forward to
building on the considerable brand strength iVillage has developed
over the past 10 years and to giving our advertising clients new
and exciting ways to reach a valuable demographic." "With this
transaction, iVillage solidifies its position as a world class
brand," said McCormick. "This milestone is recognition of the
contributions by our employees, our partners, and our investors. We
are very excited to join the NBC Universal family and to become
part of a media company that is unparalleled in its product and its
people." iVillage brings a profitable internet business, with
proprietary content and a consistent user base that commands
premium advertising pricing. With the addition of iVillage, NBC
Universal expects to grow the company's digital revenues to
approximately $200MM in 2006, and projects a 20% growth rate going
forward. Full year 2005 iVillage.com revenues were up approximately
30% year-over-year, excluding acquisitions. Additionally, NBC
Universal expects to realize significant cost synergies by using
iVillage capabilities to support existing digital operations.
"iVillage immediately gives us scale and a profitable, established
platform to expand our digital efforts, especially in the rapidly
growing areas of health and women's interests," said Beth Comstock,
President, NBC Universal Digital Media and Market Development.
"This is all about creating important new intersections between
community, content and commerce. We envision connecting more deeply
online, on mobile and on demand with key consumers throughout their
various life stages -- from their unique interests to their
finances to their health and well-being. We are also looking to
create a more customized consumer healthcare experience, working in
association with GE Healthcare." iVillage is a well-established
brand and a leading destination for a fast-growing sector of the
online audience. According to the Pew Internet & American Life
Project, 86% of women ages 18 to 29 were online, compared with 80%
of men in the same age group (January to June, 2005). iVillage
currently engages over 14 million unique users(1) with rich content
channels that tap into the wide span of women's interests, covering
everything from 'Health & Well-Being' to 'Entertainment' to
'Beauty & Style.' "This acquisition allows us to marry our
on-air branded content with compelling new interactive
functionality," added Jeff Zucker, Chief Executive Officer, NBC
Universal Television Group. "From the 'Today Show' to 'Project
Runway' to 'The Biggest Loser' to all the health & medical and
lifestyles segments we do every day on every one of our owned and
operated television stations, we will now be able to create a
deeper, richer experience around our content for consumers across
all emerging platforms." Upon completion of the transaction, the
iVillage team will report directly to Beth Comstock and continue to
be based in New York. J.P. Morgan Securities Inc. acted as the
financial advisor to iVillage. Legal advisors to NBC Universal and
iVillage were, respectively, the law firms of Weil, Gotshal &
Manges LLP and Orrick, Herrington & Sutcliffe LLP. Conference
Call Executives from NBC Universal and iVillage will hold a
conference call to discuss this announcement with the press today
at 10:00 AM (ET). The conference call will be broadcast live on the
Internet and will be available on iVillage's Corporate Relations
Web site, located at www.ivillage.com/investor, and on Street
Events, located at www.streetevents.com. A replay of the conference
call will be available on the iVillage Corporate Relations Web site
approximately one hour after the call ends on Monday, March 6, 2006
until 11:00 AM (ET) on Monday, March 13, 2006. A transcript of the
conference call will be available on the iVillage Corporate
Relations Web site thereafter. About NBC Universal NBC Universal is
one of the world's leading media and entertainment companies in the
development, production, and marketing of entertainment, news, and
information to a global audience. Formed in May 2004 through the
combining of NBC and Vivendi Universal Entertainment, NBC Universal
owns and operates a valuable portfolio of news and entertainment
networks, a premier motion picture company, significant television
production operations, a leading television stations group, and
world-renowned theme parks. NBC Universal is 80% owned by General
Electric, and 20% owned by Vivendi Universal. About NBC Universal
Digital Media NBC Universal delivers its quality content to a
variety of new media platforms, giving consumers what they want,
where they want it. In 2004, the company launched NBC Mobile and
became the first to create customized television programming
especially for the cell phone. Today, content includes original
newscasts from NBC News, comedy segments from "The Tonight Show
with Jay Leno" and entertainment updates from "Access Hollywood."
Online, NBC Universal develops content for its suite of premium
sites, MSNBC.com features netcasts of "Meet the Press," "Blogging
Baghdad" and video streams of "NBC Nightly News with Brian
Williams." Additionally, CNBCWorldTV.com offers free audio podcasts
of "Foreign Exchange." During the 2006 Torino Winter Games,
NBCOlympics.com offered its largest coverage to date with video and
audio streams, real-time results and photos, scoring the site a
record-breaking 338 million page views during the course of the
games. NBC Universal has also made a number of new platform
distribution deals, most notably as one of the first content
providers to offer programming on Apple's iTunes. iTunes customers
can download popular and classic television shows from NBC, USA,
Sci-Fi and most recently, Bravo. About iVillage Inc. iVillage is
"the Internet for women" and consists of several online and offline
media-based properties that seek to enrich the lives of women,
teenage girls and parents through the offering of unique content,
community applications, tools and interactive features. iVillage
Inc. (NASDAQ:IVIL) was established in 1995 and is headquartered in
New York City. For more information on iVillage please visit
www.ivillage.com. Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995: iVillage Inc. has
included in this press release certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 concerning the acquisition of iVillage by NBC Universal, as
well as iVillage's business, operations and financial condition.
The words or phrases "can be," "expects," "may affect,"
"anticipates," "may depend," "believes," "estimates," "plans,"
"projects" and similar words and phrases are intended to identify
such forward-looking statements. These forward-looking statements
are subject to various known and unknown risks and uncertainties
and iVillage cautions you that any forward-looking information
provided by or on behalf of iVillage is not a guarantee that the
acquisition will be consummated, or a guarantee of future results,
performance or achievements. Actual results could differ materially
from those anticipated in these forward-looking statements due to a
number of factors, some of which are beyond iVillage's control. In
addition to those risks discussed in iVillage's other press
releases, public filings and statements by iVillage's management,
factors that may cause iVillage's actual results, performance or
achievements to differ materially from any future results,
performance or achievements expressed or implied in such forward
looking statements include: (i) the volatile and competitive nature
of the Internet industry and the media industry, (ii) changes in
domestic and foreign economic, political and market conditions,
(iii) the effect of federal, state and foreign regulation on
iVillage's business, (iv) the impact of recent and future
acquisitions and joint ventures on iVillage's business and
financial condition, (v) iVillage's ability to establish and
maintain relationships with advertisers, sponsors, and other
third-party providers and partners, (vi) iVillage's ability to
maintain or increase user traffic levels, (vii) the loss of one or
more of iVillage's major customers, (viii) the effect of seasonal
fluctuations in traditional online advertising purchasing patterns
on iVillage's results of operations and (ix) the impact of pending
litigation on iVillage's business, results of operations and
financial condition. All such forward-looking statements are
current only as of the date on which such statements were made.
iVillage does not undertake any obligation to publicly update any
forward-looking statement to reflect events or circumstances after
the date on which any such statement is made or to reflect the
occurrence of unanticipated events. IMPORTANT ADDITIONAL
INFORMATION WILL BE FILED WITH THE SEC iVillage has agreed to file
a proxy statement in connection with the proposed Merger, which
will be mailed to the stockholders of iVillage. Investors and
iVillage's stockholders are urged to read carefully the proxy
statement and other relevant materials when they become available
because they will contain important information about the Merger.
Investors and security holders may obtain free copies of these
documents (when they are available) and other documents filed by
iVillage with the SEC through the web site maintained by the SEC at
www.sec.gov. In addition, investors and security holders may obtain
free copies of the documents filed with the SEC by iVillage by
going to the investor relations portion of iVillage's corporate
website at www.ivillage.com/investor or by contacting: Corporate
Secretary, iVillage Inc., 500-512 Seventh Avenue, New York, NY
10018, Telephone: (212) 600-6000. iVillage and its directors and
executive officers may be deemed to be participants in the
solicitation of proxies in respect of the transactions contemplated
by the Merger Agreement. A description of any interests that
iVillage's officers and directors have in the Merger will be
available in the proxy statement. Information regarding certain of
these persons and their beneficial ownership of iVillage common
stock as of April 27, 2005 is also set forth in the Schedule 14A
filed by iVillage on April 29, 2005 with the SEC. These documents
are available free of charge at the SEC's web site at www.sec.gov
or by going to the investors relations portion of iVillage's
corporate website at www.ivillage.com/investor. (1)ComScore, Media
Metrix, January 2006
Ivillage (NASDAQ:IVIL)
Historical Stock Chart
From May 2024 to Jun 2024
Ivillage (NASDAQ:IVIL)
Historical Stock Chart
From Jun 2023 to Jun 2024