CBS Acquires 33-1/3% of WinStar's Office.com.3 NEW YORK--(BUSINESS WIRE)--April 22, 1999-- Office.com to Receive $42 Million in Promotion and Advertising Across Wide Range of CBS Corporation
CBS Corporation (NYSE NYSE See: New York Stock Exchange : CBS (Cell Broadcast Service) See cell broadcast. ) and WinStar Communications, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : WCII) today announced a definitive agreement for CBS to acquire a one-third equity stake in Office.com(SM), WinStar's online business service. In exchange, Office.com will receive $42 million of promotion and advertising over a term of six years across the full range of CBS media properties, as well as those of its radio and outdoor subsidiary, Infinity Broadcasting Corporation (NYSE: INF INF interferon. ). Also included will be access to the sales force of CBS PLUS, the CBS cross-media sales group. WinStar's Office.com is a destination site for small- and medium-sized businesses. WinStar launched the initial phase of Office.com in August 1998 and, since then, has been supplying editorial content and business tools to Yahoo!(R) Small Business. The full-scale launch of Office.com is scheduled for the third quarter 1999. At that time, users will be able to access integrated content, commerce and communications tools, and the site will also provide timely information on the latest business trends and strategies, forums with business leaders, and the marketing, legal and technical information necessary to operate a successful business. Speaking of the investment in Office.com, Mel Karmazin Melvin Alan "Mel" Karmazin, a native New Yorker, (born August 24, 1943)[1] is an executive who has held several top jobs in the broadcasting industry and is currently CEO of Sirius Satellite Radio. , President and Chief Executive Officer, CBS Corporation, said, "We are pleased to add Office.com to our growing group of new media investments. CBS will be active in all Web destinations where people can find out about matters of importance to them - news, entertainment, sports, commerce and, of course, the workplace, among others. Along with our planned investment in storerunner.com, this represents our second entry into the world of electronic commerce. In that regard, we believe Office.com will be a key business-to-business destination, with appeal to small- and medium-sized enterprises, online customers and advertisers on both a local and national level. We look forward to the contribution we at CBS can make to its future success." William J. Rouhana, Jr., Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , WinStar Communications, Inc., said, "Driving traffic onto any new destination site is crucial to a successful online launch. The promotional power, expertise and related support that CBS is providing to Office.com will give the site the critical buzz it needs to attract customers in the business-to-business market." Office.com is the latest addition to WinStar's integrated portfolio of fast-growing Internet services, such as high-speed connectivity, Web hosting Making a Web site available on the Internet. Many ISPs host a few personal Web pages for an individual at no additional cost above the monthly service fee, but the address is subordinate to the ISP; for example, www.friendlyisp.com/pat_smith. , design and e-commerce. It is designed to fill a need in today's competitive marketplace by providing a robust, comprehensive and relevant Internet work environment for businesses. This range of products and services is increasing WinStar's revenue per customer and driving network volume across WinStar's owned and operated national high-speed local and long distance network. Rouhana added, "Office.com perfectly complements WinStar's broadband telecommunications business by delivering the power of the Internet to the business market, which constitutes our core customer base. By combining WinStar's high-speed broadband network with our Web-based content and services, we are dramatically enhancing the value of the Internet in the workplace to our customers." CBS Corporation recently announced that it had signed letters of intent to exchange promotion and advertising for equity in two online services, hollywood.com and storerunner.com. The first, hollywood.com, is a premier Web site for movies and the motion picture industry. storerunner.com is a comprehensive, interactive online shopping mall. It is the intention of CBS that CBS and its subsidiary, Infinity Broadcasting, will hold 35% of hollywood.com, 50% of storerunner.com and 33.3% of Office.com. CBS currently has investments in SportsLine USA, Inc. (NASDAQ: SPLN SPLN Spline ) and MarketWatch.com, Inc. (NASDAQ: MKTW) of 20% and 38%, respectively. Today, the market value of CBS's investments in these companies exceeds half a billion dollars. Completion of the transaction is subject to regulatory approval and customary closing conditions. CBS Corporation, the world's largest pure-play media company, is comprised of the CBS Television Network CBS Television Network Major U.S. broadcasting company and network. It began in 1928 as the Columbia Broadcasting System, a small radio network directed by William S. Paley. , with programming operations in Entertainment, News, Sports, Syndication and New Media - including CBS.com and Country.com, as well as stakes in SportsLine USA, Inc. and MarketWatch.com, Inc.; the CBS Television Stations Division, with 14 CBS Owned television stations, seven of which are in the Top 10 markets; CBS Cable An early cable network operated by CBS, Inc. dedicated to the lively arts (i.e. symphony, dance, theatre, opera, etc.). It debuted in October 1981[2] and ceased operations on December 17, 1982[3]. , with two country networks, and its regional sports operations, and more than an 80% stake in Infinity Broadcasting Corporation, which includes 160 radio stations and TDI TDI - Transport Driver Interface , the Company's outdoor business. The Company recently announced a definitive merger agreement with King World Productions Inc. (NYSE: KWP kWp Kilowatt-Peak KWP Korean Workers (Communist) Party (North Korea) KWP Kentucky Warbler Population KWP Kharan Water Project KWP Key Word Protocol ), distributor of "The Oprah Winfrey “Oprah” redirects here. For the show, see The Oprah Winfrey Show. Oprah Gail Winfrey (born January 29, 1954) is the American multiple-Emmy Award winning host of The Oprah Winfrey Show, the highest-rated talk show in television history. Show," "Wheel of Fortune," "Jeopardy" and "The Hollywood Squares." That transaction is expected to close at mid-year. WinStar Communications, Inc. is a pioneer in providing business customers with broadband communications services, such as high-speed data, Internet access and information services See Information Systems. as well as local and long distance phone service. WinStar provides these Wireless Fiber(SM) services over its own end-to-end broadband network in more than 30 U.S. markets, using its licenses in the 28 and 38 GHz spectrum. Except for any historical information continued herein, the matters discussed in this press release contain forward-looking statements that involve risks and uncertainties, which are described in WinStar's SEC reports, including the 10-K for the period ended December 31, 1998. WinStar is a registered trademark, and Wireless Fiber and Office.com are service marks of WinStar Communications, Inc. |
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