Liberate to Buy MoreCom

Liberate Technologies Inc., which makes software for interactive TV, agreed to buy closely held MoreCom Inc. for $561 million in stock, to add software for digital and satellite TV. San Carlos, Calif.-based Liberate makes software that can be used to log on to the Internet and watch cable TV at the same time. Horsham, Pa.-based MoreCom’s software serves a similar purpose for digital and satellite TV.

The acquisition comes after Liberate rival OpenTV Corp. agreed to buy Spyglass Inc. for $1.93 billion in stock to gain Internet software for cell phones. In Nasdaq trading, Liberate shares fell $5 to close at $77; OpenTV fell $39.95 to close at $129.05 and Spyglass rose $12.50 to close at $82.38.