Cisco Invests in Interactive TV Firm Liberate

Cisco Systems Inc. said that it has invested $100 million in interactive-TV company Liberate Technologies to boost its presence in the interactive television market. As part of the nonexclusive deal, Cisco’s core high-speed, or broadband, Internet equipment will be integrated with Liberate’s interactive-TV software as well as its server software.

Together, the companies will market and sell products that support new Internet-enabled appliances such as set-top boxes, game players and wireless devices.

In return for its $100-million investment, San Jose-based Cisco said it will receive a 3.9% stake in San Carlos, Calif.-based Liberate and will further its product, marketing and sales relationship with Liberate. Early Liberate investors include America Online Inc., Hambrecht & Quist, Oracle Corp. and Sun Microsystems Inc. Liberate is the Oracle unit formerly known as Network Computer Inc. Cisco Systems closed up $1.38 at $69.63 on Nasdaq.