ValueVision sells its stake in apparel retailer Polo.com
ValueVision Media Inc. is selling its stake in Ralph Lauren Media LLC, which operates Polo.com, back to Polo Ralph Lauren Corp. for $43.75 million, ValueVision Media said today.
Ralph Lauren Media, No. 101 in the Internet Retailer Top 500 Guide, was created seven years ago as a joint venture with 50% ownership by Polo, 37.5% by NBC Lauren Media Holdings Inc., a subsidiary of NBC Universal, and 12.5% by ValueVision, to develop Polo Ralph Lauren branded media projects across multiple platforms, including the Internet.
With the sale of ValueVision`s 12.5% equity interest in Ralph Lauren Media, NBC is also selling its 37.5% equity interest in the joint venture to Polo. But ValueVision, No. 64 in the Internet Retailer Top 500 Guide, will continue to provide certain fulfillment and customer support services to Polo.com through August 2008 with a potential extension through mid-2009.
“While Polo.com is performing extremely well, a minority ownership position in this business is not strategic for our company,” says ValueVision CEO William J. Lansing. “In selling this asset, we are adding to our cash reserves and giving ourselves additional flexibility. We will continue our long-standing relationship with Polo.com as its fulfillment and customer service provider.”
Polo.com posted e-commerce sales of $114 million in 2006, up by 34.1% from web sales of $85 million in 2005.
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