February 7, 2001 9:15 AM PST
Princeton Video Image jumps on Cablevision deal
Princeton Video Image (PVI), which develops virtual advertising technology for television, gained $0.94 to $5.69 after the opening bell. Cablevision shares slipped $0.20 to $83.00.
The Lawrenceville, N.J.-based company makes the virtual yellow line first down marker featured in NFL telecasts. PVI also debuted its EyeVision video system during the Super Bowl.
Under the deal, Cablevision will pay a $7.5 million non-exclusive licensing fee to PVI, which will cover the advertising company's current technologies and products, including virtual advertising, programming enhancements and virtual product placement.
In addition, Cablevision will make a $10 million equity investment in exchange for 4 million shares of PVI. The agreement also contains three-year warrants that would allow Cablevision to bump up its stake in the company to a total of 45 percent at an average strike-price of $9 a share.
Cablevision, which owns a controlling interest and operates Madison Square Garden and its sports teams including the Knicks and Rangers, plans to use the technology for its various units.
The two companies also said they will work jointly to develop new technologies and products, including targeted advertising services over digital set-top boxes on Cablevision's systems in the New York area.