NBC Universal to Buy Oprah’s Oxygen

Oprah Winfrey co-founded Oxygen Media, a cable television network, in 2000.  Thanks to Oprah’s involvement (she is one of the most powerful women in the world), the network has grown very successful (now available in 74 million homes) attracting a large audience of primarily female viewers.  That audience is very appealing to NBC Universal who is 80% owned by General Electric (NYSE: GE).  Today, it was announced that NBC Universal plans to acquire Oxygen Media for $925 million.

NBC Universal has been trying to increase its presence and foothold in the female market for some time.  Last year, NBC Universal bought the iVillage network of websites for women, so acquiring Oxygen seems like an intelligent next step.  NBC Universal plans to extend the reach of Oxygen and cross-promote its products and services through its various channels to more effectively reach the coveted female audience.

What do you think of NBC Universal’s plans to acquire Oxygen Media?  Are you surprised that Oprah and her team agreed to the sale?  It seems like a natural step in NBC Universal’s long-term strategy, and I’d be surprised if the acquisition was not a success for them.  Oxygen has a strong brand presence thanks to Opray Winfrey’s involvement.  It remains to be seen how that brand will change once NBC Universal takes Oprah’s place.