Two General Electric units, NBC and GE Equity, took a 20% stake worth $56 million in ValueVision. Both NBC and ValueVision expect the alliance to boost online and television profits. The technology will allow the companies to cross promote products on both computer and television screens.
NBC and GE Equity will buy a fifth of ValueVision with preferred and common stock warrants. Each GE unit will have a seat on ValueVision’s board as well as the opportunity to increase the equity stake to 39.9. NBC will handle and redesign ValueVision’s cable and affiliate relations, home shopping network, and Web site. The broadcaster claims the partnership will boost electronic commerce revenue.
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