On Monday, December 20, 1999, MTV Networks,
the music/entertainment cable television and Internet business, announced
it would split its Net company into two separate groups. MTV Networks
On-line will be divvied up into the MTVi Group, which includes VH1.com,
MTV.com and SonicNet.com, and Nickelodeon On-line, which includes nick.com,
nickjr.com, tvland.com, nick-at-night.com, gas.nick.com, teachers.nic.com
and redrocket.com. "Executives in the past have stated that both companies
would be going public," said a spokesman for MTV Networks. "This move
obviously strengthens both companies," he said, adding that this was the
next step down the path of an IPO. Nicholas Butterworth will continue to
serve as president and chief executive of The MTVi Group. Fred Seibert will
helm Nickelodeon On-line. Both execs will report to Tom Freston, chairman
and CEO of MTV Networks. This action comes in the wake of a federal
anti-trust probe by the U.S. Justice Department on the company. Practices
such as demanding exclusive rights to air music videos and setting unfair
rates due to their monopoly of the music video market are issues being
investigated by the Justice Department.
Rick DeMott
Animation World Network
Creator of Rick's Flicks Picks
