TECHNOLOGY - Aug. 7, 1996

AOL Buys AT&T;’s ImagiNation Network: The purchase of the telephone company’s money-losing computer game network is considered a major expansion of entertainment services for America Online Inc.’s 6.2 million subscribers. The price paid for Burlingame, Calif.-based ImagiNation Network Inc. wasn’t disclosed. AT&T; Corp., the No. 1 long-distance company, said in April that it planned to sell ImagiNation Network as it shifted its focus to Internet-based services. AT&T; paid more than $40 million to Sierra On-Line Inc. and General Atlantic Partners in November 1994 to acquire the 80% of the network it didn’t already own. Analysts estimated the annual loss on the venture at $5 million to $8 million. ImagiNation will operate as a wholly owned subsidiary of Vienna, Va.-based AOL.