Sony Subsidiary Takes Equity Stake in eUniverse

Posted on July 13, 2001

eUniverse, Inc., an interactive entertainment network, and 550 Digital Media Ventures (550 DMV), a subsidiary of Sony Broadband Entertainment, announced that 550 DMV will take up to a $17 million equity stake in eUniverse in exchange for cash and assets. As part of the deal 550 DMV will make a $5 million equity investment in eUniverse and gain a seat on the Board of Directors

Under the agreement eUniverse will also purchase InfoBeat, a personalized news and entertainment email service with 8 million active daily subscribers, from 550 DMV for $9.94 million in eUniverse equity. InfoBeat will join eUniverse's network of email newsletter services, which aggregated reach over 50 million subscribers.

``eUniverse has built a tremendous audience by delivering compelling online entertainment that people want to see,'' said Fred Ehrlich, President and CEO, 550 Digital Media Ventures. ``With massive reach through both Web and email distribution, eUniverse has become a leader in online permission and performance marketing techniques. With the infusion of capital and the addition of the leading email service InfoBeat, we believe eUniverse will continue to be one of the winners in the online space.''

``550 Digital Media Ventures' decision to become a significant shareholder and a strategic partner is a tremendous affirmation of the eUniverse business model, and speaks to the accomplishments of our management team,'' said Brad Greenspan, chairman and CEO, eUniverse. ``The acquisition of InfoBeat will put eUniverse above the 50 million email subscriber threshold, and will significantly broaden the offerings of our network, one of the most successful online today.''