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NBCU Boosts Online Presence With Purchase of Female-Targeted iVillage

Mar 6, 2006  •  Post A Comment

NBC Universal said Monday that it will pay around $600 million to acquire iVillage, the female-targeted destination Web site, in a move by the media giant to bolster its online profile.

NBCU will pay $8.50 per share to buy iVillage, with an expectation of closing the transaction sometime in the second quarter. The terms represent a premium over iVillage’s Friday closing price of $7.98 per share.

The deal comes at a time when large media companies are looking to grab a share of the ever-growing advertising dollars being directed to the Internet. Last year, Rupert Murdoch’s News Corp. acquired MySpace, a fast-growing Web site that focuses on community.

NBCU officials said they had a similar idea in mind when going after iVillage, noting that the Web site is a leading destination for women. They also noted that the site has the opportunity to expand into other demographics as well.

What’s more, NBCU executives said that the company’s skill at producing original content provides opportunities for NBCU to create content for iVillage. They also plan to examine how existing NBCU content might be repurposed for the Web site.