VITAMEDIAS
What Does Microsoft Really Think of the MSNBC Venture?
"MSNBC is the news provider for MSN. After e-mail, news is the No. 1 application for Internet users," MSN's Moore said. "MSNBC is really a crown jewel for MSN, and we place a very large value on the NBC partnership from the standpoint of the brand. I think that's only going to get more important as we enter a more broadly deployed broadband audience."
One source said that Microsoft is losing $25 to $30 million a year on MSNBC.com.
[Merrill Brown, who left his post as editor in chief of MSNBC.com earlier this year] said the deal between the companies is complex. "The two companies are intimately married together, and the process of unwinding it would be difficult, painful and not particularly strategic," he said.
MSNBC insiders say the cable channel is running close to break-even and should be profitable in 2003.