Denver -- MediaOne Group Inc. has cut a deal with, and
taken equity in, Long Beach, Calif.-based e-commerce firm Netgateway Inc.
The exact terms of the deal were not announced, but
Netgateway said in a prepared statement that the cable operator will retain the right to
warrants based on future performance requirements.
For its part, MediaOne will contribute $10 million in
promotional advertising on its cable systems over the term of the agreement.
Netgateway has specialized in business-to-business uses of
the Internet. But under the terms of its agreement with MediaOne, the firm will create,
host and manage electronic-shopping portals in each cable system.
The first online "shop" will open in the fourth
quarter of this year, with complete rollout expected within 18 months.
Netgateway formed a cable division in June in its attempt
to attract contracts from the industry, and it set up an Internet-commerce center here.
The company has experience in Web-site design, transaction
processing, data warehousing and customer support.
Content for MediaOne will include classifieds, community
calendars and coupons. The companies will collaborate on the sale of the Web sites to
Weekly digest of streaming and OTT industry news
Thank you for signing up to Multichannel News. You will receive a verification email shortly.
There was a problem. Please refresh the page and try again.