Infobeat to Live Under eUniverse

EUniverse Inc. agreed to acquire popular newsletter Infobeat from Sony Inc.’s 550 Digital Media Ventures unit, as part of a deal the companies valued at about $17 million.

Under the terms of the deal, the Sony (SNE) unit, 550 DMV, will make a $5 million equity investment in eUniverse (EUNI) and gain a seat on the board. EUniverse will purchase InfoBeat for eUniverse stock valued at $9.94 million. EUniverse also receives the option, subject to certain future conditions, to convert a $2.1 million note to equity.

Also, the companies said they are exploring options for marketing and distribution opportunities for other Sony companies on eUniverse’s network.
InfoBeat, a free newsletter that has about eight million subscribers, will join eUniverse’s network of e-mail services, which in total reach more than 50 million subscribers. InfoBeat delivers daily newsletters on topics including entertainment, news and sports.

EUniverse, of Los Angeles, operates a network of entertainment-focused content, community and e-commerce sites.

The companies said the specific terms and closing conditions of the transactions will be provided in a filing with the Securities and Exchange Commission on Monday.

Copyright (c) 2001 Dow Jones & Company, Inc. All Rights Reserved.