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Tuesday November 14, 11:59 am Eastern Time
OpenTV, Motorola in pact to boost interactive TV
MOUNTAIN VIEW, Calif., Nov 14 (Reuters) - OpenTV Corp. (NasdaqNM:OPTV - news), a maker of software for digital interactive TV, said Tuesday it has entered into a strategic pact with Motorola Inc.'s (NYSE:MOT - news) broadband communications unit that will boost OpenTV's efforts with cable networks.
The pact includes the formation of a new joint venture entity to assist digital interactive TV deployments. The venture's services will include cable and satellite integration, testing and development. It will begin offering services beginning 2001.
As part of the alliance, OpenTV and Motorola will reach out to cable and satellite operators through collaborative market efforts.
Shares of OpenTV were up more than nine percent to $23-29/32, off its 52-week low of $20-1/2. Motorola shares climbed more than six percent to $24-1/4, off its 52-week low of $20.
Digital TV software lets customers access interactive TV features such as programming guides, video-on-demand and Internet access.
OpenTV said Monday its software was now deployed in more than 11 million digital set-top boxes worldwide, with over 1.7 million new deployments in the third-quarter largely because of its relationship with satellite provider EchoStar Communications Corp. (NasdaqNM:DISH - news) in the United States.
The company is trying to build its presence in the U.S., where interactive television market is in its early stages.
For example, Motorola, which is an OpenTV shareholder, has agreed to make referrals and recommend the services of the new joint venture, when appropriate, to independent software vendors and high-speed data network operators considering interactive software deployments.
Motorola has also named OpenTV its preferred interactive TV software and development partner. Through that relationship. OpenTV has licensed its most widely deployed browser in the U.S. cable TV industry, Device Mosaic Web browser, for use on Motorola digital set-top terminals.
OpenTV also will also connect to Motorola's advanced interactive digital set-top targeted for the European market.
Separately, OpenTV also said it has bought CableSoft Corp., which provides on-demand information software for high-speed network operators, for 1.6 million shares of OpenTV's stock. Motorola was one of CableSoft's primary shareholders.
Under another separate agreement, Motorola decided to buy OpenTV's equity interest in the Acadia Application Integration Center. The deal brings Motorola's ownership up to 100 percent.
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