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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Peach who wrote (2732)	7/29/1999 2:11:00 PM
From: Q.	Read Replies (1) \| Respond to of 3015

TV Guide Says Source Media Venture May Not Proceed (Update1) (Adds company comments from 2nd paragraph. Updates stock.) Tulsa, Oklahoma, July 29 (Bloomberg) -- TV Guide Inc., owner of the top weekly television-listings publication, said it may not proceed with a joint venture with Source Media Inc. because the company's patents for interactive television were improperly transferred from Canada. Dallas-based Source Media failed to get the necessary regulatory approvals from Canadian authorities to transfer the patents, TV Guide President Peter Boylan said on a conference call yesterday. Source Media's legal counsel, Maryann Walsh, said that the company doesn't have any problems with its patents. TV Guide said in February that it planned to take a 6.2 percent stake in Source Media, and that the two companies would develop cable and satellite-television services. Boylan said in an interview today that he's spoken with Source Media about the patent problem and couldn't predict when it would be resolved. ''The Canadians are very tight about foreign activity and technology transfer out of their country,'' Boylan said. TV Guide discovered the problem while conducting due diligence for the venture. Source Media fell 1/16 to 12 7/16 in early afternoon trading. TV Guide, based in Tulsa, Oklahoma, fell 7/8 to 32 5/8. Joint Venture The joint-venture agreement aimed to pair TV Guide's growing on-screen program-listings business with Source Media's technology and software for local content and advertising. The agreement was originally announced by United Video Satellite Group Inc., which changed its name after it bought TV Guide for $2.51 billion in March. The company said in February that it would pay $12 million for 842,000 Source Media shares. It also would receive warrants to buy 14 million more shares at $14.25 each, allowing it to raise its stake to 40 percent. quote.bloomberg.com