Alloy Online, an e-commerce site aimed at teens and pre-teens, has entered a partnership with interactive TV pioneer Liberty Digital in a deal valued at $54 million. According to the agreement, Liberty Digital will receive 2.9 million shares of newly issued Alloy Online stock. Alloy will receive $10 million in cash, plus shares of Liberty Digital stock.
The agreement calls for the two companies to jointly develop interactive content aimed at visitors to the Alloy site. In addition, Lee Masters, president and CEO of Liberty Digital, will join Alloy's board of directors.
"We are very enthusiastic about this opportunity, which represents a tremendous endorsement of Alloy's positioning and expansion strategies,'' says Matt Diamond, Alloy chairman & CEO. "We are excited that Liberty Digital has selected Alloy as its anchor in the teen space, particularly as we prepare for the future convergence of broadband and television. In a short period of time, we have been highly successful in expanding Alloy's Web-centric, multimedia platform by marketing our content and commerce across the Internet, television, film and print.''