Liberty Media Unit and ACTV Promote Interactive TV
By Cindy Christ

ACTV and Liberty Livewire LLC, a unit of Liberty Media Group, unveiled a global venture Friday aimed at linking television with the Internet.

In a joint statement, the companies said the new venture, called HyperTV with Livewire, would offer turnkey convergence services, including application hosting, Web authoring, data management, e-commerce and other value-added services for advertisers, TV programmers, studios and networks.

"While providing for the eventual deployment of advanced digital cable set-tops is an important consideration, it is also apparent that a technology is needed to jump-start the process," said Liberty vice president David Beddow.

Liberty Livewire will launch the service by tapping existing clients in the feature film, long-form TV, television advertising, and music video production businesses, the companies said.

"HyperTV with Livewire combines ACTV's expertise in convergence with Liberty Livewire's creative expertise and deep customer relationships with Hollywood and the advertising industry," said Bruce Crowley, president of ACTV's Hyper TV Networks subsidiary.

Liberty Livewire will open content authoring facilities in Los Angeles and New York, the companies said.

New York-based ACTV is a pioneer in digital TV technology.

Its HyperTV software allows TV networks, programmers and advertisers to deliver Internet content, Web-based advertising, electronic commerce and chat features synchronized to live or pre-recorded TV programming to homes with a computer Internet connection and TV in the same room.

Owned by AT&T Corp. (T), Englewood, Colo.-based Liberty Media Group provides programming services through a variety of media, electronic retailing and direct marketing, international cable and telephony services, wireless communications services, and high-speed Internet access.

After the alliance was announced, Bear Stearns upgraded shares in ACTV to "buy" from "accumulate."

Shares in ACTV (IATV) finished lower Friday, down $3.69, or 17.8 percent, at $17 amid a technology rout on the Nasdaq.

Liberty Media Group (LMG.A and LMG.B) dropped $3.81, or 7.4 percent, to $48.06.

On Thursday Liberty Media Group announced a 2-for-1 stock split effective May 25 for shareholders of record on June 9.