BUSINESS BLOGS
BUSINESS BLOGS
category: business
28 Jan 2008
related tags: Video | M&A | TV Networks | NBC | CBS |

According to PaidContent.org, NBC acquires LX.tv:

Multi-platform entertainment programmer LX.TV has been acquired by NBC’s Local Media Division.

While no one is talking money, we hear the deal could be worth about $10 million, not a huge hit but a more than decent exit.

Part of LX.TV’s appeal to NBC Local Media is its out-of-home use—for instance, NYC taxis—at a time when NBC is expanding its out-of-home reach and advertising efforts.

This would be the second pure content acquisition I can think of. Last year CBS acquired Wallstrip for $4M (at the time it was reported that it was $5M). I mentioned that that was a very nice comparable for us because our library size and distribution network was larger than Wallstrip’s… though admittedly we were comparing apples and oranges given their tight focus on the finance vertical while we aim for a broader coverage across auto, business, travel, health etc.

I mentioned to my friend Howard Lindzon, founder of Wallstrip, that he sold too soon… but when the Tiffany Network comes a-knocking, can you really resist their offer? Mind you, this does vindicate me in suggesting that it was too early to sell.

Nothing against LX.tv, but this brings a big smile to my face because our library size is vastly larger than LX.tv etc. and not to brag, but our out of home reach is much larger than LX.tv’s, too.

I’m very happy for the LX team, they found a good home at NBC.

Looking ahead, this is a convergence on a number of trends, namely video and local advertising.   Let’s just hope NBC does better with LX than they did with the iVillage integration, though in all fairness that was a bigger - and more complex - integration.