All,
I just found this article, not only is ACTV mentioned again, Liberty also talks about providing interactive video services to AT&T cable systems.
Now that we know AT&T is making a big announcement next week in LA, I wonder if????????????????????????????????????????????
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Date Posted: 4/9/1999
TCI Music gets the goods
Liberty adds priceline.com, others to lackluster division to create new media contender
In preparation for putting Liberty Media at full sail in digital seas, John Malone intends to transform the obscure and underperforming TCI Music into the figurehead for Liberty's Internet-interactive TV investments.
The plan is for Liberty, a dominant force in the cable programming arena, to achieve racing trim by contributing its Internet and interactive television holdings to TCI Music; in return, Liberty gets even greater control of the company.
"This is going to be Liberty Media's and John Malone's primary vehicle for investing in Internet, new media, and related technologies," says Lee Masters, chairman of TCI Music and CEO of Liberty Digital (currently not part of TCI Music). "This company is going to be for the Internet and new media what Liberty is for cable programming."
Among the holdings Liberty would swap to TCI Music: priceline.com, iVillage, Sportsline USA, drugstore.com, iBeam, Interactive Pictures Corp., and ACTV.
Perhaps as importantly, Liberty would contribute its rights to provide interactive video services to AT&T cable systems.
Assuming TCI Music stockholders approve the proposal this month, the company would become Liberty Digital, with 94% of the equity owned by Liberty Media. That compares to Liberty's current 86% equity ownership of TCI Music. In an era where the standing joke is that you can double a stock's price just by adding ".com" to the name, it's not surprising that even the idea of a Malone-Internet pairing has enormous impact.
For example, on the day Liberty made its proposal, TCI Music shares skyrocketed a stunning 253% to $29.5625, boosting TCI Music's market cap from $681.7 million to $2.4 billion in the space of a few hours.
While the Internet-induced stock euphoria likely will ebb and flow, analysts are encouraged by what the proposed asset reorganization means for Liberty.
"By contributing those assets (to TCI Music), people can see what they're worth and Liberty has a currency going forward to do Internet-related transactions," says Mark Greenberg, manager of mutual fund giant Invesco's Leisure Fund. "For those reasons, it makes sense." |
