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NBC drops plan to sell its stake in ValueVision

Last update: March 25, 2008 - 9:48 PM

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ValueVision Media, which operates luxury TV shopping network ShopNBC, said Tuesday that its largest investor has withdrawn plans to sell its 18 percent stake in the Eden Prairie-based company.

NBC Universal had registered to sell 6.4 million shares of ValueVision in March 2007, when shares were trading at twice their current price of $6.01.

ValueVision did not explain in its news release why the offer was withdrawn. NBC Universal is the entertainment division of General Electric Co.

ValueVision on Tuesday also announced its third straight quarter of losses as it struggles to restructure operations at ShopNBC and to keep its stock from skidding.

ValueVision lost $791,000, or 2 cents per share, in the fourth quarter, compared with a profit of $3.5 million, or 8 cents per share, a year earlier.

Sales for the quarter ended Feb. 2 increased 1 percent, to $218 million. Revenue was buoyed by a 21 percent growth in online sales, which contributed to nearly a third of the total revenue, the company said.

ValueVision ended the year with a net income of $22.5 million, after losing $2.4 million last year.

Through a stock buyback, the company's share count at the end of the quarter shrank to 35.3 million, from 42.9 million a year ago. The company said earlier this month that it will repurchase another $10 million in stock.

The company had two layoffs in May and January, cutting about 22 percent of its workforce. It now has about 560 employees.

TV shopping veteran Rene Aiu became CEO of the troubled company earlier this month.

JACKIE CROSBY

4th quarter FY2007, 2/2

2007 2006 % chg. Revenue $218.0 $216.7 +0.6 Income -0.8 3.5 -- Net/cm -0.9 3.4 -- Earn/share -0.02 0.08 --

12 months

Revenue $781.6 $767.3 +1.9 Income 22.5 -2.4 -- Net/cm 22.2 -2.7 -- Earn/share 0.53 -0.07 --

Figures in millions except for earnings per share.

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