Stock Watch: NBC Buys More of Xoom.com

NBC announced late Monday that it is investing $25 million more in direct e-commerce company Xoom.com (Nasdaq: XMCM), which will become part of the new NBC Internet public company later in the year. In addition, NBC said it is furthering its commitment to Xoom.com and the pending NBC Internet deal by accelerating a $30 million cash investment it had previously announced. This brings NBC’s total investment to $55 million at an average price of $57.30 a share.

The most significant part of this announcement, of course, is the average price, which is much more than what Xoom.com is trading for right now. Shares of Xoom.com closed down 1/2 to 43-/18 on Tuesday. NBC and its parent company General Electric are obviously counting on NBC Internet to add a lot of shareholder value.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

E-Commerce Times Channels