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Software industry

NBC and Microsoft Announce Joint Venture for 24-Hour Cable News Channel

Strategic Insights

— 2 min read

NBC, a unit of General Electric Co., and Microsoft Corp. have announced plans for a five-year joint venture to produce an all-news 24-hour cable channel, MSNBC Cable. The service, a 50-50 venture, is expected to begin in the Fall of 1996, with Microsoft investing $220 million in the cable operations for its 50 percent stake over the next five years. This ambitious project aims to integrate news deliveries through broadcast, cable, and the Internet, meeting the diverse needs of viewers worldwide.

Key Takeaways:

  • NBC and Microsoft will co-produce a 24-hour cable news channel, MSNBC Cable, with a 50-50 stake, expected to launch in the Fall of 1996.
  • Microsoft will invest $220 million in the cable operations for its 50 percent stake over the next five years.
  • The joint venture will also include a cable on-line news service over the Internet, expected to reach 35 million customers by the year 2000.
  • Both companies will fund the on-line service with $200 million in investments.
  • NBC News will retain complete editorial control over the accuracy and integrity of the news content of both services.
  • Michael Eisner, CEO of NBC, is quoted as saying: "We're excited by the opportunity to work together in global commerce with the proven entrepreneurial capabilities of Microsoft."
  • Bill Gates, CEO of Microsoft, also stated: "We have great respect for the quality of NBC's international news gathering organization."
  • The companies plan to cross-promote each service, guiding viewers and subscribers through a web of interwoven news and information programs.
  • MSNBC Cable will feature NBC News correspondents, live coverage of world events, news analysis, and a multimedia presence on screen.
  • The interactive online service, accessible through the Microsoft Network, will leverage content available globally from NBC and CNBC to offer a broad online view of news.

Statistics:

  • Microsoft will invest $220 million in the cable operations for its 50 percent stake over the next five years.
  • The joint venture aims to reach 35 million customers through its on-line news service by the year 2000.
  • $200 million will be invested in the on-line service by both NBC and Microsoft.
  • 50-50 stake in the joint venture will be shared by NBC and Microsoft.
  • NBC News will manage the MSNBC Cable operations.
  • The first campaign to launch the joint venture is scheduled to launch in the Fall of 1996.

Sources:

  • NBC announcement, 14 December (Source: NBC News wire services).
  • Microsoft announcement, 14 December (Source: Microsoft Corporate News Services).
  • NBC/Microsoft joint press conference, 14 December (Source: NBC News wire services).
  • Jack Welch, CEO of General Electric, in an interview, 14 December (Source: NBC News wire services).
  • Bill Gates, CEO of Microsoft, in an interview, 14 December (Source: Microsoft Corporate News Services).

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