EXHIBIT 99
VALUEVISION MEDIA
6740 Shady Oak Road
[LOGO] Minneapolis, MN 55344-3433
VALUEVISION Contact: Anthony Giombetti
Director, Corporate Communications
952-943-6017, agiombetti@shopnbc.com
FOR IMMEDIATE RELEASE
VALUEVISION MEDIA ANNOUNCES AGREEMENT TO ACQUIRE FANBUZZ
Deal to diversify shopping network into
licensed products and apparel business
To mutually expand both companies e-commerce and fulfillment capabilities
MINNEAPOLIS, MN, FEBRUARY 25, 2002 - ValueVision Media (Nasdaq: VVTV), owner and
operator of TV shopping network ShopNBC and Internet site ShopNBC.com, today
announced it has signed a definitive agreement to acquire Minneapolis-based
FanBuzz, an e-commerce and fulfillment solutions provider of affinity based
merchandise to some of the most recognized sports, media, and entertainment
brands in the world, including ESPN, CNN/Sports Illustrated, the Salt Lake 2002
Olympic Winter Games, the Los Angeles Times, the Chicago Bears, USA Hockey, and
many other professional sports teams, leagues, and colleges. The deal is
expected to close within 30 days. Financial terms not disclosed.
As part of the agreement, FanBuzz will operate independently as a wholly owned
subsidiary of ValueVision Media. Co-founder Scott Killian will continue to lead
the enterprise.
"This deal signals significant revenue and marketing opportunities to mutually
drive both businesses," said Gene McCaffery, Chairman and Chief Executive of
ValueVision Media. "We are pleased to have FanBuzz as part of the ShopNBC
family. They have an impressive management team and merchant group, who have
great experience in selling licensed products and apparel in an interactive way.
They also have great contacts with major sports, media, and entertainment
companies."
Dick Barnes, ValueVision Media COO & CFO, said, "Both strategically and
financially, this is a sound deal for us. The acquisition of FanBuzz will be
non-dilutive in fiscal 2002 and accretive thereafter. Moreover, FanBuzz will
bring more than $20 million in incremental revenue annualized. At this time we
are not adjusting our previously released guidance for the current fiscal year,
although it will certainly enhance the likelihood we will meet or beat our
revenue guidance."
Scott Killian, President of FanBuzz, said, "We are excited about this
development and believe this acquisition will strengthen FanBuzz to deliver on
our original vision of providing complete commerce solutions to major sports,
media, entertainment, and retail brands. As we continue to expand our business,
we look forward to leveraging ValueVision Media's resources: the ShopNBC network
and brand name as well as their valued customer base."
ABOUT VALUEVISION MEDIA
ValueVision Media owns and operates ShopNBC, a leading national shopping
network, and is capitalizing on the convergence of television, the Internet, and
commerce. ShopNBC broadcasts 24 hours a day, 365 days a year and simulcasts its
programming live on the Web at www.shopnbc.com and www.yahoo.shoppingvision.com.
As of January 31, 2002, ShopNBC broadcast into approximately 52 million
cable/satellite households and is available on DirecTV Channel 370, DISH Channel
228, or call your local cable operator for the channel in your area. Also, GE
Equity and NBC own approximately 40% of ValueVision Media. For more information,
please see the Company's website at www.shopnbc.com/ir.
ABOUT FANBUZZ
FanBuzz was founded in 1996 by co-founder Scott Killian and Tim Brule. Together
they pioneered the business model of operating online stores for
already-established brands and destinations. FanBuzz successfully leveraged the
inventory and infrastructure of its multiple clients allowing them to capitalize
on affinity-based commerce opportunities. They also provided best of breed
services including private labeled e-commerce technology, call center solutions,
and product fulfillment as well as their own exclusive CustomFan garment
decoration program.
In 2001, FanBuzz unveiled CustomFan, the industry's first mass customization
solution which allows products to be produced to the customer's preference. Over
170 universities and a dozen top NASCAR racing teams agreed to participate in
the launch of the program.
FanBuzz also made history in early 2001 when the company pioneered the sports
industry's first television-commerce broadcast during the 2001 NHL All-Star
game. Fans with digital or satellite cable had the option to purchase All-Star
merchandise directly over their televisions, without interrupting the action.
FanBuzz employs over 120 people in two states and has been recognized as one of
the 20 fastest growing companies in Minnesota by Twin City Business Monthly and
by Deloitte & Touche with the Minnesota Technology Fast 50 Award.
SAFE HARBOR
This release contains certain "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management's current expectations and are accordingly subject to uncertainty
and changes in circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors, including (but
not limited to): consumer spending and debt levels; interest rates; competitive
pressures on sales, pricing and gross profit margins; the level of cable
distribution for the Company's programming and the fees associated therewith;
the success of the Company's e-commerce and rebranding initiatives; the
performance of its equity investments; the success of its strategic alliances
and relationships; the performance of the Ralph Lauren Media venture; the
ability of the Company to manage its operating expenses successfully; risks
associated with acquisitions; changes in governmental or regulatory
requirements; litigation or governmental proceedings affecting the Company's
operations; and the ability of the Company to obtain and retain key executives
and employees. More detailed information about those factors is set forth in the
Company's filings with the Securities and Exchange Commission, including the
Company's annual report on Form 10-K, quarterly reports on Form 10-Q, and
current reports on Form 8-K. The Company is under no obligation (and expressly
disclaims any such obligation to) update or alter its forward-looking statements
whether as a result of new information, future events or otherwise.
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