General Electric Co, NBC, NBC Internet Inc., and ValueVision International Inc. will invest $70.5 million in Telocity. The Cupertino, CA-based start-up offers user-installed high-speed Internet access to consumers at home over standard telephone lines through digital subscriber line technology.
NBC Internet’s Snap.com will develop Web pages and services, including multimedia content and e-commerce. The service is expected to launch early in 2000, but the companies involved must arrange with local telephone carriers for use of their lines.
The investment represents a 19% equity stake. Some $37.5 million will be in cash, while the rest will be in NBC and NBC Internet online and television promotion. The stake concludes a second round of financing of $127.5 million for Telocity.
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