IRVINE, Calif.–Oct. 4, 1999–Broadcom Corporation (Nasdaq: BRCM), anenabler of broadband communications to and throughout the home andbusiness, and Gotcha International, the renowned surfwear and mediacompany, today launched Broadband Interactive Group Inc. (B.I.G.). B.I.G.is a privately held company whose first mandate is the creation ofinteractive content targeted at the 10 to 24 year-old age group, referredto as “Generation Y.”
This new content will be formed through the convergence of the Internet,television, print media and live events. As part of this transaction,B.I.G. has acquired all of the existing media properties of Gotcha, whichinclude magazines, the Gotcha.com(R) website, TV production and a libraryof action sports video footage.
The transaction also includes the Gotcha Pro(R) surf events, thecompany’s existing trademarks, which generate $100 million in salesworldwide, and Gotcha(R), MCD(R) and GirlStar’s(R) world-class sponsoredathletes. With Broadcom’s technical guidance, these media properties willbe used to develop content which supports broadband interactivity and themyriad features of next-generation digital set-top boxes.
“It has already been proven that the economic model for retailing,advertising, and content development can work in the narrowband Internetenvironment,” said Dr. Henry T. Nicholas III, Broadcom’s president andCEO. “With B.I.G., we will enhance this model by adapting it forbroadband. We believe this investment will accelerate the creation ofcompelling broadband interactive content, thus spurring greater demandfor the advanced cable set-top boxes of our customers.”
Matt Jacobson, B.I.G.’s CEO, said, “Our objective is to build upon themedia properties and trademarks of Gotcha, which have already achievedimpressive levels of penetration into our target demographic. From thisstarting point we will develop compelling content that takes advantage ofthe full potential of broadband communications and interactivity. Thebroadband Internet expertise we gain from partnering with Broadcom,combined with Gotcha’s 21-year history of building brand credibility andits understanding of consumers, makes for an extremely powerfulcombination.”
Broadcom Corporation has made a financial investment in B.I.G. and willprovide technical guidance to influence interactive content development.B.I.G.’s backing also includes individual investments by Nicholas,Broadcom co-founder Henry Samueli and Gotcha CEO Marvin Winkler.
The new company includes an experienced team of nearly 50 mediaprofessionals, led by Jacobson. Prior to joining B.I.G., Jacobson servedin senior posts at FOX and at its parent company, News Corporation (NYSE:NWS), the global media company headed by Rupert Murdoch. Jacobson wasexecutive vice president of News America Digital Publishing (NADP), theelectronic publishing operations division of News Corporation’s NewsAmerica Publishing Company, where he directed the company’s interests inglobal Internet ventures and all aspects of the division’s strategies,new business efforts and endeavors.
He also served as executive vice president of News Corporation’s NewsTechnology Group, where he was responsible for all marketing efforts andthe development of consumer applications for the global media company’soperating units.
More than 23.5 million people actively participate in the sports targetedby B.I.G., and discretionary spending by young consumers is over $91billion annually, according to the Sporting Goods Manufacturers’Association and a Rand Youth Poll, respectively.
“For marketers aiming to reach targeted consumers across multipleplatforms, B.I.G. secures the highest possible reach into this market,”Jacobson said. “The B.I.G. network combines viewership, readership,registered users and participants, and the support of well-known athletessuch as motocross expert Brian Deegan, multisport experts Danielle Martinand Nathan Fletcher, big wave surfer Brock Little and surfing pros AndyIrons and Roob Machado.”
“This target market and our network is all about the experience and thelifestyle tied to these sports,” he said. “Whether it is online, on TV orat the events, we’re creating an environment where people engage andparticipate. What we’re building is the `stickiest’ network imaginable.”
The B.I.G. Inc. network converges television, print and Internet mediawith live events, to reach participants and fans of skateboarding,wakeboarding, surfing, snowboarding, freestyle motocross and BMX. Thegroup manages major competitions, publishes magazines, produces programsfor network television and runs the Gotcha.com website. B.I.G. letsparticipants express themselves in print, on video, online and during”sessions,” while connecting them to top athletes in their sport. TheB.I.G. experience is available at www.gotcha.com.
Broadcom Corporation is a leading provider of highly integrated siliconsolutions that enable broadband digital transmission of voice, data andvideo content to and throughout the home and within the businessenterprise. Using proprietary technologies and advanced designmethodologies, the company designs, develops and supplies integratedcircuits for some of the most significant broadband communicationsmarkets, including the markets for cable set-top boxes, cable modems,high-speed office networks, home networking, direct broadcast satelliteand terrestrial digital broadcast, and digital subscriber line (xDSL).Broadcom is headquartered in Irvine, Calif., and may be contacted at949-450-8700 or at www.broadcom.com.