ValueVision rebrands with NBC
Shares of the ValueVision, the cable and satellite broadcasting company 36 percent-owned by GE Equity and NBC, closed off 0.25 to 18.94 in Monday's session. NBCi (Nasdaq: NBCI), an Internet spin-off of NBC which has also tried to leverage the peacock brand online, saw its shares end the day down 0.41 to 5.09.
Under the deal, NBC will license to ValueVision an NBC-branded name and the Peacock image for 10 years for the ValueVision Network and its related web site. The new name will be unveiled in the spring.
The two companies have also agreed to explore further opportunities, including possible joint promotional, merchandising and marketing between NBC and the rebranded network.
According to ValueVision, the company will focus on leveraging the NBC name and its drawing power. A key priority will be targeted sales to cataloguers, retailers and manufacturers.
NBCi has been struggling of late, with missteps relating the branding of its portal. The company originally bought Snap with the plan of launching an Internet portal under the target's name. After market research, NBC changed course and launched its integrated NBCi portal - including Snap.com and Xoom.com - this fall.
Separately, ValueVision released its numbers for the third quarter, posting revenue of $95.24 million, up 24 percent year-over-year from $76.58 million. Excluding charges and gains, net income for the period was $4.18 million, or 9 cents per diluted share, a penny greater than the First Call estimate. This was up from the $2.85 million, or 6 cents per diluted share earned in the third quarter last year.
Including a $55 million pre-tax write down, the company lost a net $36.81 million, or 95 cents per diluted share for the period.
Reuters contributed to this report.