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NBC to Acquire iVillage, Expects It to Drive Digital Strategy

NBC Universal announced today that it will acquire iVillage for about $600 million, or $8.50 per share, writes Mediapost. Thanks to the acquisition, NBC U expects to grow its digital revenues to approximately $200 million in ‘06, and expects a 20 percent growth rate. iVillage revenues grew 20 percent in 2005 over 2004, excluding acquisitions.

iVillage, with over 14 million unique users according to comScore, offers proprietary content and a user base that commands premium advertising pricing, MarketingVox writes.

“iVillage immediately gives us scale and a profitable, established platform to expand our digital efforts, especially in the rapidly growing areas of health and women’s interests,” said Beth Comstock, President, NBC Universal Digital Media and Market Development, in a statement.

“This is all about creating important new intersections between community, content and commerce. We envision connecting more deeply online, on mobile and on demand with key consumers throughout their various life stages…. We are also looking to create a more customized consumer healthcare experience, working in association with GE Healthcare.”

Upon completion of the transaction, the iVillage team will report directly to Comstock and will remain in New York.