BET Interactive Buys BET.com

BET Networks, a unit of Viacom Inc. (NYSE: VIA, VIA.B), announced Friday that BET Interactive, its Internet operating unit, is taking one of its most strategic steps in its six-year history with the cash buyout of its original investment group consisting of Microsoft, News Corporation, Liberty Media and IAC/InterActive Corp and the former investors from 360HipHop.com, led by hip-hop mogul Russell Simmons.

BET Networks Chairman and CEO Debra Lee

BET Networks Chairman and CEO Debra Lee along with Michael Pickrum, Executive Vice President and Chief Operating Officer of BET Interactive, announced the transaction on Friday, August 25.

"This is a great day for BET Networks and BET Interactive as we've seen our goal of 100 percent controlling interest in our Internet property come true," said Lee. "The growth and success achieved by BET.com has been nothing short of remarkable in a tumultuous marketplace that saw many interactive ventures fail. We can attribute that success directly to the strategic leadership of Michael Pickrum and his management team."

BET.com has established itself as the leading online media site for African-American content and targeted brand advertising. The portal first launched in 2000 with initial venture capital funding from its original investors. Since then, a business plan based on financial discipline, strategic partnerships and commitment to serving its core audience helped BET.com achieve success across all of its key metrics.

Pickrum said, "Buying out the original investors is a cornerstone in BET's digital media strategy. Our ability to establish and sustain success enables us to execute a plan to create even more compelling content for millions of users in an advertising-supported environment."

For Viacom, the buyout of the BET Interactive shareholders is another step in its multiplatform strategy that is fueling all of its business units.

Financial terms were not disclosed.