Liberty's new venture, Liberty Interactive, hopes to create content designed to take advantage of the capabilities of advanced set top boxes and other convergence appliances. The new venture will create its content through Internet development, acquisitions, and partnerships.
"Liberty Interactive will be a high priority for us as the cable industry prepares to roll out the next generation of set-top devices," Robert Bennett, Liberty Media president and chief executive, said in a statement.
Liberty will contribute to Liberty Interactive its 86 percent interest in TCI Music and Liberty's agreement with TCI regarding development of interactive video services.
Liberty also will finance the venture as needed and supply other resources. Liberty Interactive will be a wholly owned subsidiary of Liberty Media.
Lee Masters, president and chief executive of E Entertainment Television, will head up the management team of Liberty Interactive as president and CEO beginning January 1, 1999. Bruce Ravenel will be the executive vice president and chief technology officer.
"I am evangelical in my belief that the single greatest growth opportunity for value creation will be producing programming and content for the convergence of the TV and the Web through the set-top box," Masters said in a statement.