liberty increases ACTV investment
Tuesday April 13, 7:28 am Eastern Time
Company Press Release
Liberty Media Increases Investment in ACTV, Inc.,
Strengthening Key Partnership
NEW YORK and ENGLEWOOD, Colo.--(BUSINESS WIRE)--April 13, 1999--
Liberty Media Group (NYSE:LMG.A - news, LMG.B - news) and ACTV, Inc.,
(NASDAQ:IATV - news) today announced an agreement in principle whereby Liberty will
invest an additional $9 million in ACTV, Inc., by exercising previously existing options and
purchasing additional common stock. In addition, Liberty will receive new options in ACTV,
Inc., which it may exercise over a period of one-to-five years. If these options are fully exercised, Liberty's investment in
ACTV, Inc., will total more than $100 million, representing an estimated 25 percent interest in the company.
As previously announced, Liberty Media has made a proposal to TCI Music, Inc. (NASDAQ:TUNE - news, TUNEP - news)
pursuant to which Liberty would contribute substantially all of its directly owned Internet and interactive television assets to TCI
Music in exchange for newly issued shares of TCI Music's Series B common stock. The assets proposed to be contributed to
TCI Music, which would change its name to Liberty Digital, Inc., would include Liberty's holdings of ACTV's securities.
ACTV is a leader in interactive digital television with its proprietary ''Individualized Television'' programming capabilities, and a
pioneer in TV-Internet convergence with its patented HyperTV(TM) software application. In addition to Liberty's initial
strategic investment of $5 million in September 1998, the companies announced a joint venture which is currently exploring
other applications of ACTV's technology.
Lee Masters, president and CEO of Liberty Digital, said: ''ACTV has continued to develop a suite of innovative applications
which fit very well with Liberty Digital's strategy of bringing new digital and interactive applications to the marketplace.''
''Liberty Media and Liberty Digital possess incredible vision and foresight, and ACTV could not ask for stronger partners,''
said David Reese, president and chief operating officer, ACTV, Inc. ''We greatly appreciate their support and look forward to
continuing our work together.''
ACTV and TCI Music's The Box Music Network are currently collaborating on an enhanced version of viewer-controlled
music programming, using ACTV's proprietary digital programming technology. The Box Music Network and ACTV believe
giving the viewer greater control over the experience might drive viewer satisfaction and take rates for pay-per-view
programming featuring live concerts and musical events.
This February, ACTV joined Liberty Digital as the initial tenants in AT&T Broadband & Internet Services' (formerly
Tele-Communications, Inc.'s) National Digital Television Center-Los Angeles, one of the nation's leading digital content
creation facilities.
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