Shareholders sell raft of Liberate stock

Oracle, Netscape, Comcast and Mitchell Kertzman, Liberate Technologies' chief executive, plan to sell 8.5 million shares of Liberate stock.

Liberate, which was formerly known as Network Computer Inc (NCI), was set up as a joint venture between Oracle and other vendors such as Sony in 1996 to sell network computers.

In May last year, however, it changed its name to Liberate and started selling software for TV settop boxes, games consoles, smartphones and handheld devices, before going public in July.

In its filing with the Securities and Exchange Commission, Liberate said it expected its sale of 2.89 million of the total 8.5 million shares to raise $236.5 million after expenses. The estimate is based on a share price of $86.

The company said it would use the proceeds for general corporate purposes, including the expansion of its research and development facilities and service capabilities.

But it added that it may also use some of the funds for potential acquisitions. Earlier this month, Liberate acquired technology from Source Media and Insight Communications in exchange for 886,000 of its stock to enable it to bring interactive TV applications to a wider variety of settop boxes.

A Liberate spokesperson said: "We are a software company and we will concentrate on providing the software for deployment of Internet appliances."

He added that he saw wireless technology and phone and power lines as equally viable home networking solutions over the next few years, claiming "from our standpoint, we'll be transport independent".

Next Level Communications and Liberate are also teaming up to create interactive TV services and high speed Internet access over standard telephone lines using digital subscriber line technology.

The two companies will integrate Liberate's client and server software with Next Level's advanced DSL broadband delivery system.