NBC, Jockeying for Position, Snaps Up Xoom

The new venture will be called NBC Internet.
Author:
Publish date:

SAN FRANCISCO -- NBC, jockeying for position in the fast-growing Internet industry, agreed to combine its Web offerings with online community and commerce site Xoom.com (XMCM) .

The new venture, to be called

NBC Internet

, combines the

Snap.com

venture of

CNet

(CNET) - Get Report

and NBC with Xoom.com and

NBC Interactive

, which includes NBC.com. NBC took a stake in Snap.com and CNet last June and has been promoting Snap.com on its site.

Xoom.com Chairman Chris Kitze will be the new company's CEO.

Xoom stock was mostly flat Friday before rumors of a deal began swirling on the message boards. The speculation provided a late boost, pushing Xoom shares up 10.5% to 75 1/8, giving the company a market capitalization of $1.2 billion.

Snap.com has been one of the fastest-growing Internet hubs, according to the most recent

Media Metrix

monthly reports. In March, Snap.com was the 12th most-visited site, with about 9.8 million unique visitors. Xoom.com ranked 13th, with about 9.7 million unique visitors. The new company will likely jump into the top 10.

The deal couldn't have come at a worse time for

Lycos

(LCOS)

, whose proposed deal with

USA Networks

(USAI) - Get Report

is about to be scuttled, according to published reports. The deal has been openly opposed by Lycos shareholders including

CMGI

(CMGI)

.

The Wall Street Journal

, citing people familiar with the situation, reported Monday that USA Networks is expected to abandon its three-month-long bid to acquire Lycos.