Snap.com, Xoom.com buy stakes in BuyItNow.com

Jan. 2, 2002 4:43 p.m. PT

2 min read

Snap.com and Xoom.com said Monday they will become e-commerce partners with BuyItNow.com, L.L.C., a diversified e-tailer. Snap will take a 3.6 percent stake in the company with Xoom owning 1.8 percent.

CNET's Snap.com, (Nasdaq: CNET) an Internet portal, and Xoom.com (Nasdaq: XMCM), an e-commerce company, will also join Clear Channel Communications Inc. (NYSE: CCU), and e4L Inc. (NYSE: ETV) as partners in the recently formed BuyItNow.com.L.L.C. Snap.com and Xoom.com will be the cornerstones of the upcoming NBCi offering.

Snap.com is slated to merge with NBC's Internet assets and Xoom.com, the to form the seventh-largest Internet site and the first publicly traded Internet company integrated with a major broadcaster. The new company, NBC Internet (NBCi), plans to integrate broadcast, portal and e-commerce services.

Under the BuyItNow.com deal, Snap.com will receive a 3.6 percent stake in BuyItNow.com, in exchange for a spot in its "Gift Shop." The swap is valued at $10 million. Snap.com plans to strengthen its shopping services through the alliance with the company acclaimed for its diversified "Web Plaza," and "e-reps" who help on-line customers find products and overcome transaction any problems.

Xoom.com will receive a 1.8 percent stake in BuyItNow.com, in exchange for $5 million in online marketing and promotion, and the position of BuyItNow.com direct e-commerce partner. The San Francisco-based Xoom.com intends the alliance to attract more online buyers.

Under the new agreements, e4L will own 48.7 percent of the new company, BuyItNow Inc. will own 41.4 percent; Clear Channel will own 4.5 percent. Clear Channel Communications (NYSE: CCU), a media and outdoor advertising company, is affiliated with 625 radio stations, 19 television stations and approximately 302,000 outdoor advertising displays in 26 countries worldwide. e4L is the world's largest publicly-held retailer of products over television, radio and the Internet.

"These new relationships with Xoom.com and Snap.com will play an instrumental role towards maintaining and expanding our existing customer base, while allowing us yet another vehicle for branding and marketing BuyItNow.com," said Anthony C. Link, president and CEO of BuyItNow.com L.L.C., in a company release.