NBC buys a majority stake in MSNBC
American television broadcasting giants NBC has decided to increase their stake in the MSNBC group they manage in collaboration with Microsoft MSN. The company now has a majority stake in the group and this move would give them an increased control over the functioning of the media channel. This move is to enable them to help the struggling all-news cable channel and goes on to show how Microsoft has struggled to manage their television-based service.
NBC would now wind up with an 82 percent stake in the cable network. However, MSN would continue to have a major part in running of the media web portal MSNBC.com. This latest deal between these two companies also includes a clause, which would enable NBC to acquire the rest of the stake in MSNBC after a period of 2 years.
Both the companies have declined to reveal the financial terms of this updated deal between the two parties. Microsoft had initially invested close to $220 million for a 50 percent stake in the network around 10 years ago. The project was expected to bring the two separate medias Internet and Television together. However, it looks like a not so successful attempt from the software giant.
MSNBC.com the web portal has been quite successful in bringing in customers. However, the news channel suffers from poor viewer ship when compared to competing channels like Fox News and Time Warner Inc.’s CNN.