NBC Universal to Acquire Oxygen Media

Expands Company's Successful Cable Entertainment Business

Strengthens NBCU's Position in Fast-Growing Female Category

Seven-Year-Old Female-Targeted Network Reaches 74 Million Homes

    NEW YORK, Oct. 9 /PRNewswire/ -- NBC Universal is acquiring Oxygen
 Media, one of the nation's leading female-focused cable television
 networks, thus expanding its highly successful cable portfolio. The
 announcement was made today by Jeff Zucker, President and CEO, NBC
 Universal.
     Under the agreement, NBCU will acquire Oxygen for $925 million. Net of
 financial assets, the purchase price is approximately $875 million. The
 network, which is available in more than 74 million homes, has been
 registering significant growth in both ad sales and viewership, with the
 just- completed third quarter being the most-watched in the history of the
 network. Launched in 2000, Oxygen is the only fully distributed
 entertainment cable channel launched in the last decade.
     Zucker said: "In just seven short years, Oxygen has become the crown
 jewel of independent networks. It's a terrific property with a clear
 mission, strong brand, and desirable audience. This acquisition increases
 our foothold in the advertiser-coveted young, upscale, female demographic,
 and perfectly complements our current roster of cable channels and plays to
 our strength of running and operating cable networks."
     The acquisition by NBC Universal is part of the company's strategy to
 transform its portfolio and focus on assets with potential for rapid
 growth. Oxygen joins NBC Universal's fully-owned cable entertainment
 networks, which include USA Network, the most-watched basic cable network
 in every key demographic; Bravo, the most upscale basic cable network,
 which just completed the best third quarter in its history; and SCI FI, the
 sixth-ranked basic cable entertainment network. Along with CNBC and MSNBC,
 NBC Universal's cable networks account for 50% of the company's profits,
 and are experiencing double-digit, year-over-year growth.
     Oxygen was founded by current Chairman and CEO Geraldine Laybourne
 along with talk show host Oprah Winfrey and television producers Marcy
 Carsey, Tom Werner and Caryn Mandabach.
     Commenting on the announcement, Laybourne said: "This deal with NBCU is
 the best way for Oxygen to grow. In seven years, we built a spectacular
 brand for women. We built Oxygen from scratch - we became profitable, grew
 from zero to 74 million subscribers and produced original programming that
 resonates with young women everywhere. I couldn't be more proud of my team.
 Now together with NBCU, Oxygen can become an even bigger brand."
     Oxygen will strengthen NBC Universal's position of leadership in
 upscale, female-focused media. Oxygen's audience complements the viewers of
 Bravo and the Today show and visitors to iVillage, the leading online site
 for women. With these rich assets across multiple platforms, NBCU will now
 have an even more attractive go-to-market position in the fast-growing
 women's entertainment and lifestyle market. Upon completion of the
 transaction, Oxygen will be merged into NBC Universal's Entertainment Cable
 division, which is managed by Jeff Gaspin, President and Chief Operating
 Officer, Universal Television Group.
     Said Gaspin: "We are very excited to add Oxygen to our portfolio of
 cable assets. We believe we can take it to the next level by expanding the
 quality brand that has been created by Gerry and the rest of the team."
     The Oxygen purchase will be substantially self-funded through the sale
 of non-core assets. NBC Universal is selling its two independent Telemundo
 television stations: KWHY in Los Angeles, one of its two Spanish-language
 stations in that city, and WKAQ in Puerto Rico.
     The Oxygen transaction will be accretive to earnings after the first
 full year, and is valued at an attractive price per subscriber of less than
 $12. NBC Universal expects revenue and cost synergies of approximately $35
 million in 2008.
     The transaction is expected to close in November following the receipt
 of customary regulatory approvals.
     About NBC Universal:
     NBC Universal is one of the world's leading media and entertainment
 companies in the development, production, and marketing of entertainment,
 news, and information to a global audience. Formed in May 2004 through the
 combining of NBC and Vivendi Universal Entertainment, NBC Universal owns
 and operates a valuable portfolio of news and entertainment networks, a
 premier motion picture company, significant television production
 operations, a leading television stations group, and world-renowned theme
 parks. NBC Universal is 80% owned by General Electric and 20% owned by
 Vivendi.
     About Oxygen Media:
     Oxygen is currently available in over 74 million homes. The network was
 launched in 2000 to fill a void in the television landscape -- creating a
 network targeted to younger women. Oxygen is rewriting the rulebook for
 women's television, with vast array of unconventional and original
 programming including The Janice Dickinson Modeling Agency, The Bad Girls
 Club, Tori & Dean: Inn Love and Campus Ladies. Geraldine Laybourne, the
 network's founder, Chairman and CEO, has led the company to be a strong
 advocate for women. Through programs like The Mentor's Walk, Oxygen's
 national program for bringing along the next generation, and "Who Cares
 About Girls," Oxygen's new documentary series -- Oxygen is creating The New
 Girls Network.
 
 

SOURCE NBC Universal