NBC Discovers Women Exist Online, Decides To Buy In

from the putting-lipstick-on-a-peacock- dept

While News Corp's buyout binge of social-networking startups is the equivalent of putting lipstick on a pig, NBC is hitting up the makeup aisle itself, announcing a purchase of women's oriented site iVillage for $600 million. Predictably, NBC executives are talking up the potential for synergies and cross promotion (like putting Today show clips on child care up on iVillage.com). In reality, the deal gives NBC more ad inventory to goose online sales. Come next year things will look good assuming everyone forgets that $600 million was spent on those sales. Usually, the strategic or synergistic argument is used as a way to justify a bad merger in economic terms (think ebay/Skype), but in this case it's the opposite. The deal is okay, probably neutral from an economic standpoint, but NBC still needs to make itself look cool, so they trot out tired explanations. And as long as big media still feels the need to reinvent itself, without altering their business model in any way, these deals will continue with the same justification.


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  1.  
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    Anonymous Coward, Mar 6th, 2006 @ 5:20pm

    No Subject Given

    Woot first post >;|

     

    reply to this | link to this | view in thread ]

  2.  
    identicon
    Techie Chick, Mar 6th, 2006 @ 6:45pm

    Well Duh...

    Wonder if they'll link to the pricewatch deal of the day too? Who cares about fashion?!

     

    reply to this | link to this | view in thread ]

  3.  
    identicon
    Anonymous Coward, Mar 6th, 2006 @ 10:18pm

    primarily caters to women?

    No matter what the product is or who is selling that product... wont people most always go to whom they can trust to deliver their desired product and provide excellent customer service?

    Basically, if there are already companies who provide this service and are doing an adequate job of doing such, what does NBC promise to bring to the table that the others are not already doing?

    Sure, women buy make-up and they use computers... men buy products that women don't necessarily use - so what's the big deal about NBC discovering that women exist online - other than to just announced that NBC have just purchased a company that primarily caters to women.

     

    reply to this | link to this | view in thread ]

  4.  
    identicon
    The Son Of Morgoth, Mar 7th, 2006 @ 12:35am

    Re: primarily caters to women?

    true that

     

    reply to this | link to this | view in thread ]


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