Summary:

The UK retail giant Tesco has bought out iVillage’s stake in the UK subsidiary iVillage.co.uk. The UK site for the woman-focused portal open…

The UK retail giant Tesco has bought out iVillage’s stake in the UK subsidiary iVillage.co.uk. The UK site for the woman-focused portal opened in 2000, and was a 50:50 joint-venture between Tesco.com and iVillage.

Tesco will purchase iVillage’s ownership interest in iVillage UK, which will become a wholly-owned subsidiary of Tesco. Additionally, the subsidiary has entered into a 20-year agreement where it will license from iVillage content and intellectual property, including trademarks and copyrights.

The license agreement is structured such that iVillage will receive the greater of a set monthly fee or a percentage of gross revenue.

Here’s my follow-up question: will iVillage US now sell out to Wal-Mart? It already has a close relationship with Wal-Mart, through its iVillage Parenting Network.

Also see NMA’s analysis of the deal: “Players within the women’s portal market will increasingly have to define very clearly what they’re about…Although quite how iVillage’s community-focused user base will respond to presumably a greater emphasis on e-commerce remains to be seen.”

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