Las Vegas Business news briefs -- May 10, 1999

INTERNET COMPANY

NBC joining Snap.com, Xoom.com

NEW YORK -- NBC is joining forces with Web directory service Snap.com and Xoom.com, an electronic commerce site, to form a new Internet company in an attempt to broaden its online presence.

Under the deal announced today, the new company, NBC Internet or NBCi, will operate under the Snap name online but will include content from NBC and the trademark peacock brand.

By merging several different kinds of Internet properties under one umbrella, the new company is hoping to position itself as a full-service site with search capabilities from Snap, the online sales expertise of Xoom.com, and entertainment content from NBC.

NBC will own about half of the new venture and is contributing several of its online properties, including NBC.com and Videoseeker.com. NBC is also contributing a 10 percent ownership stake in CNBC.com, the parent of Snap, to the new venture.

Xoom.com shareholders will own about a third of the company, and CNET will own about 13 percent.

MSNBC, a 50-50 news partnership between NBC and Microsoft Corp., was not part of the deal and will continue to operate on its own.

SPRINT

Wholesale rate rule approved

The Public Utilities Commission of Nevada approved an order establishing how much competitors must pay to use Sprint's telephone lines in the Las Vegas area.

The order, approved unanimously, establishes what factors would be considered in determining rates, but the rates themselves won't be set until later this month as Sprint and regulators calculate the impact of some of the new variables.

MGC Communications, the largest of Sprint's local exchange competitors, would be affected most by the new rate structure. Company officials said they would review the rates when they are released and did not comment on the PUC vote.

Establishing wholesale rates in local exchange markets was mandated by the federal Telecommunications Act of 1996.

RILEY BOWER NEVADA INC.

Homeowners file suit against builders

Ten residents of a North Las Vegas neighborhood filed suit in District Court against a homebuilder for construction deficiencies.

The residents, who own homes on Bonita Desert Court and Galisteo Court north of the North Las Vegas airport, say their homes were damaged through poor compaction of soils, improper drainage and poor waterproofing of walls, roofs, slabs and framing.

Accused of negligence and breach of warranty in the suit was Riley Bower Nevada Inc., where officials could not be reached for comment.

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