MSNBC -MSFT-NBC Restructuring: The Hard Numbers

And they thought they would sneak this one past us? Well, Microsoft filed its 10-Q report this afternoon, and it has the numbers, in all its gory details of the MSNBC join venture unraveling and NBC taking control: “Microsoft and NBC Universal entered into amended and restated agreements to restructure their joint venture relationships for MSNBC Cable L.L.C. (“CJV”) and MSNBC Interactive News, L.L.C. (“IJV”). As a result, Microsoft divested 32% of CJV for $331 million and NBC acquired the right, exercisable in the following two years, to buy the remaining 18% interest.

In addition, Microsoft and NBC modified their agreements to grant to IJV a content license to the U.S. only and to remove the exclusivity obligation on both NBC and Microsoft for local and non-U.S. news content. As part of the MSNBC restructuring agreements, Microsoft paid a fee of $200 million to effectively terminate IJV’s prior content license agreement and Microsoft prepaid the remaining $14 million license fee to NBC.

Microsoft’s sale of its 32% investment in CJV resulted in a recognized gain of $248 million. Microsoft also recognized a loss as a result of the effective termination of IJV’s license agreement of $200 million. For the three and six months ended December 31, 2005 income from equity investees and other includes a net gain of $48 million related to the restructuring of CJV and IJV.”

So there, you have it…now you know. We’ll try to get some more explanation of this in plainer language tomorrow..


NBCU Takes Full Control Of MSNBC; Web Site Remains Joint Effort’s Recent History, Through Links