Source Media Inc. terminated its operations after selling Insight
Communications Co. Inc. its sole remaining cable asset -- a 50 percent stake in
the SourceSuite venture that markets the SourceGuide interactive programming
guide and LocalSource interactive-TV-content service.
Insight, which already owned 50 percent of SourceSuite, acquired the other
half by surrendering bonds Source had issued to the MSO.
Shares in Source -- which cracked the $30-per-share level in 1998 amid
unfounded rumors that it was an acquisition target of either Microsoft Corp. or
America Online Inc. -- dropped by one penny Monday, closing at 14 cents per
Despite the hype tied to its IPG and local-content offering, Source never
managed to sell its products to any MSO other than Insight.
Insight president Michael Willner said the MSO will now market SourceSuite to
Insight joins Cablevision Systems Corp. as operators that are pitching
interactive-TV products -- Rainbow Media Holdings Inc.'s Mag Rack content, in
Cablevision's case -- to other MSOs.