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Microsoft lands TV deal
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November 8, 2001: 6:56 a.m. ET
Software maker to provide technology for Charter Communications.
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NEW YORK (CNNmoney) - Microsoft Corp. entered and agreement to provide its television software to Charter Communications, as the nation's fourth largest cable company rolls out its interactive TV services.
The companies said the agreement will start with a field trial in St. Louis and an expanded launch will take place in early 2002, with the Microsoft platform eventually reaching 1 million homes over the next seven years.
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"We selected Microsoft TV because it will enable us to quickly deploy the interactive information and entertainment services that consumers are looking for from interactive TV," said Charter's executive vice president and chief technical officer, Steve Silva. "This agreement enables us to add interactive TV services to our current business immediately."
Despite the value of its TV technology, Microsoft may have had an inside track in securing the Charter deal from TV software competitors such as Liberate Technologies (LBRT: Research, Estimates). Charter's chairman, Paul Allen, controls 94 percent of the company's voting power and co-created Microsoft with Bill Gates.
Charter's interactive TV service will offer e-mail, Internet access and streaming media content using additional Microsoft technology.
Financial terms of the agreement were not disclosed.
Shares of Microsoft (MSFT: Research, Estimates) dropped 53 cents to close at $64.25 Wednesday, while Charter Communications (CHTR: Research, Estimates) shares shed 24 cents to close at $13.84. 
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