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CBS ups SportsLine stake
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February 11, 1999: 8:16 a.m. ET
Interest in sports service raised to 18% as it boosts Internet presence
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NEW YORK (CNNfn) - CBS, the focus of speculation about a possible spinoff of its Internet holdings, added to its online interest Thursday by increasing its stake in SportsLine USA Inc.
Under terms of the agreement, CBS (CBS) immediately raised its holdings in the online sports news, information, scores and marketing service to 18 percent from the 12.5 percent. CBS also holds warrants on SportsLine stock that, if exercised, could raise the stake to more than 27 percent.
The agreement also extended SportsLine USA's (SPLN)authority to use the CBS brand name for its service an additional five years, through the end of 2006.
CBS also agreed to provide about $100 million in on-air promotions for the service, and to integrate the service in its advertising for CBS Sports.
"This marks another step in our strategy of leveraging our brands to increase our position in new media," CBS president Mel Karmazin said. "Together with our investment with CBS MarketWatch.com and our new relationship with America Online as our company's sole branded-news provider, CBS is continuing to grow our strong presence on the Internet."
That presence was the focus of a published report last week that CBS is interested in spinning off its Internet properties. But spokesmen for the company said the idea is only in the contemplation stage, and that no plans have been made.
Besides its interest in SportsLine USA, CBS holds a 38 percent stake in MarketWatch, an online business news service. The company also recently announced an agreement to be the exclusive news provider for America Online (AOL).
CBS shares closed Wednesday at 35-7/16, down 9/16. SportsLine USA shares closed down 1-1/2 to 34-7/8. 
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