WorldGate sheds assets, focuses on videophone
WorldGate Communications Inc. is making an about-face, selling off much of its interactive TV business to interactive programming guide consortium TVGateway LLC as it dives down a new path as a videophone technology provider.
The struggling interactive TV software provider has entered a definitive $3 million agreement to sell certain television intellectual property rights to TVGateway, a consortium backed by Adelphia Communications, Comcast Corp. and Cox Communications. WorldGate, a former TVGateway partner, will sell back that equity investment to the consortium as part of the agreement.
Under the sale agreement, TVGateway also will provide a license back to WorldGate, allowing it to continue providing interactive cable television data feeds and network monitoring for its clients using the technology it originally developed. WorldGate also will retain certain rights to its designs and technology, as well as inventory, contractual rights and most of its other assets.
Meanwhile, WorldGate will refocus its efforts toward development of a videophone designed to work with existing broadband networks.