AT&T last week agreed to pay $40 million to buy the remaining 80% of ImagiNation Network, the unprofitable but growing online computer gaming company based in Burlingame, Calif. AT&T, which had held a 20% stake, bought out Sierra On-Line's 60% and the 20% held by General Atlantic Partners. ImagiNation, with 45,000 subscribers, allows consumers to play games with one another over telephone lines via computer modems.
Mosaic Communications Corp., the Internet navigator company led by former Silicon Graphics Chairman Jim Clark, changed its name to Netscape Communications Corp. to allay concerns expressed by the University of Illinois, developer of the original Mosaic browsing tool for the Internet. Mosaic Communications was formed to market a commercial version of Mosaic, which has been available free over the Internet.
CompuServe is on a shopping expedition. The online company will participate in CommerceNet's test of Internet transaction services. In addition, 12 merchants from CompuServe's online Electronic Mall will market their products through the service's CD-ROM beginning with its December edition. Participating catalogers include Brooks Brothers and Chef's Catalog (see related story on this page).
Interchange, the start-up online service from Ziff-Davis Interactive, added 19 computer hardware and software companies as sponsors, including Lotus Development Corp., AT&T Paradyne Corp. and SoftKey International. ... Novell and General Instrument Corp. will jointly develop interactive cable and PC tools. ... IBM Corp. acquired an equity interest in ICTV, a Los Gatos, Calif., interactive TV company working with Cox Communications for a planned test in Omaha. ... Time Warner's Full Service Network will offer Atari Jaguar games on demand.