At BarterNews, we have been
contending for years that the �Best & Brightest� use barter in the
building of their wealth�here is another example of that message.
Discovery
Communications and Oprah Winfrey have announced a deal where the
Discovery Health network will be bartered to Winfrey next year, and
become the Oprah Winfrey Network (OWN).
The cash-free
transaction involved Winfrey turning over half ownership of
Oprah.com (her
web site with 6 million unique visitors a month) to Discovery, while
the communications company makes her chairman of the network which
is currently seen in 68 million homes. The two entities (Harpo
Production and Discovery) will be joint owners...50/50 in ownership
and profits.
What�s the
value of the deal? Hard to say at this point as Winfrey�s star power
will generate greater revenue from cable companies once she comes
aboard with her programming in mid 2009. But cable TV networks don�t
come cheap. When Microsoft invested in MSNBC back in 1996 it put up
$300 million for its half stake in a startup. (And Bill Gates is a
tough negotiator.)
So Oprah�s
�media empire� includes:
1.
Her top-rated TV talk
show
2. A satellite radio network (XM
Radio)
3. A web site
4. TV movies made under her banner
5. Now the OWN TV Network (68
million potential viewers, with coverage in 2/3 of the nation�s
homes)
The focus of
the channel will be Oprah�s brand�to educate and inspire people to
live the best life they can. Some of Winfrey�s stable of regular
contributors could be expected to be part of the programming.
Winfrey�s current talk show, as well as rights to use of reruns, is
spoken for until the end of the 2010/2011 season.
According to
Winfrey, she made an entry in her diary May 24, 1992, about an idea
for creating her own TV network...15 years later it�s a reality, and
barter once again was the catalyst for a huge deal.
Oprah�s dream
has come true. She will now have the opportunity to do this 24-hours
a day on a platform that goes on forever.
