U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 3
INITIAL STATEMENT OF BENEFICIAL OWNERSHIP OF SECURITIES
Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934,
Section 17(a) of the Public Utility Holding Company Act of 1935 or
Section 30(f) of the Investment Company Act of 1940
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1. Name and Address of Reporting Person*
AT&T Corp.
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(Last) (First) (Middle)
32 Avenue of the Americas
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(Street)
New York New York 10013-2412
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(City) (State) (Zip)
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2. Date of Event Requiring Statement (Month/Day/Year)
March 9, 1999
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3. IRS Identification Number of Reporting Person (if an entity)
13-4924710
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4. Issuer Name and Ticker or Trading Symbol
Interactive Network, Inc. (Symbol: INNN)
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5. Relationship of Reporting Person to Issuer
(Check all applicable)
[ ] Director [ X ] 10% Owner
[ ] Officer (give title below) [ ] Other (specify below)
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6. If Amendment, Date of Original (Month/Day/Year)
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7. Individual or Joint/Group Filing (Check applicable line)
[ X ] Form filed by One Reporting Person
[ ] Form filed by More than One Reporting Person
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Table I -- Non-Derivative Securities Beneficially Owned
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<TABLE>
<CAPTION>
3. Ownership Form:
2. Amount of Securities Direct (D) or
1. Title of Security Beneficially Owned Indirect (I) 4. Nature of Indirect Beneficial Ownership
(Instr. 4) (Instr. 4) (Instr. 5) (Instr.5)
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<S> <C> <C> <C>
Common Stock, no par value 4,830,908 I See attached.
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Reminder: Report on a separate line for each class of securities beneficially
owned directly or indirectly.
(Print or Type Responses)
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FORM 3 (continued)
Table II -- Derivative Securities Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
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<CAPTION>
5. Owner-
3. Title and Amount of Securities ship
Underlying Derivative Securities Form of
2. Date Exercisable (Instr. 4) Derivative
and Expiration Date --------------------------------- 4. Conver- Security:
(Month/Day/Year) Amount sion or Direct 6. Nature of
---------------------- or Exercise (D) or Indirect
Date Expira- Number Price of Indirect Beneficial
1. Title of Derivative Exer- tion of Derivative (I) Ownership
Security (Instr. 4) cisable Date Title Shares Security (Instr.5) (Instr. 5)
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<S> <C> <C> <C> <C> <C> <C> <C>
Warrants See See Common Stock, 108,696 $8.00 per I See attached.
attached. attached. no par value share
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Senior Secured See See Common Stock, See See I See attached.
Convertible Notes attached. attached. no par value attached. attached.
(see attached)
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Convertible Promissory See See Common Stock, See See I See attached.
Note (see attached) attached. attached. no par value attached. attached.
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</TABLE>
Explanation of Responses:See attached.
(See attached) (See attached)
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Signature of Reporting Person Date
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FORM 3 CONTINUATION SHEET
EXPLANATION OF RESPONSES
This Initial Statement of Beneficial Ownership on Form 3 (this
"Form") is filed by AT&T Corp., a New York corporation ("AT&T"). AT&T succeeded,
as of March 9, 1999, to the beneficial ownership of the 4,830,908 shares of
Common Stock, no par value (the "Common Stock") of Interactive Network, Inc.
(the "Issuer") (Symbol: INNN) and the other securities of the Issuer reported on
this Form as a result of the merger (the "Merger") of Italy Merger Corp., a
wholly owned subsidiary of AT&T, with and into Tele-Communications, Inc.
("TCI"), pursuant to which TCI became a wholly owned subsidiary of AT&T. TCI had
previously filed a Statement of Beneficial Ownership on Form 3 reporting
beneficial ownership of such shares of Common Stock and such other securities of
the Issuer. The shares of Common Stock and the other securities of the Issuer
beneficially owned by AT&T are held by subsidiaries of TCI.
TCI holds, through subsidiaries, an aggregate of $10,008,216.80
principal amount of notes of the Issuer in the form of Senior Secured
Convertible Notes and a Convertible Promissory Note (the "Notes") which are
convertible by their terms into shares of Common Stock, together with accrued
and unpaid interest thereon of $4,706,318.53. The Senior Secured Convertible
Notes were acquired by a subsidiary of TCI pursuant to a Note Purchase
Agreement, dated as of September 19, 1994, as amended by a letter agreement
dated as of September 23, 1994 (the "Note Purchase Agreement"), and the
Convertible Promissory Note was acquired by a subsidiary of TCI pursuant to a
Note Conversion Agreement, dated as of April 22, 1994 (the "Note Conversion
Agreement").
In connection with certain litigation among the Issuer, TCI and
certain of its subsidiaries and certain other parties, on July 10, 1998, such
parties and certain other parties entered into an agreement (the "Settlement
Agreement") whereby the Issuer agreed to file a petition under Chapter 11 of the
Bankruptcy Code in the United States Bankruptcy Court for the Northern District
of California (the "Bankruptcy Court"). The filing was made on September 14,
1998. Under the terms of the Settlement Agreement, upon entry by the Bankruptcy
Court of a final non-appealable order confirming the Issuer's Plan of
Reorganization (the "Plan"), among other things, TCI and the Issuer will enter
into a mutually acceptable exchange agreement pursuant to which TCI will
exchange all of the Notes for newly issued shares of Common Stock (the "Exchange
Shares"). The number of Exchange Shares to be received by TCI will be equal to
(x) the aggregate principal amount of the Notes, together with all interest
accrued and unpaid thereon, divided by (y) an amount up to $5.00 to be
determined by the Issuer's board of directors. If the Settlement Agreement is
not consummated, the Notes would remain convertible into shares of Common Stock
pursuant to the terms of the Note Conversion Agreement and the Note Purchase
Agreement.
The Plan was filed on December 22, 1998 and the First Amendment to
the Plan was filed on February 18, 1999.
In addition, in connection with the purchase by a subsidiary of
TCI of Notes, such subsidiary received warrants exercisable until September 23,
1999 to purchase 108,696 shares of Common Stock at a price of $8.00 per share,
subject to adjustment.
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The foregoing summary is qualified in its entirety by reference to
the text of the Agreement and Plan of Restructuring and Merger, dated as of June
23, 1998, among AT&T, Italy Merger Corp. and TCI, the description of the Merger
and the related transactions set forth in the AT&T/TCI Proxy
Statement/Prospectus that forms a part of the Registration Statement on Form S-4
(File No. 333-70279) of AT&T filed on January 8, 1999, and the text of the
Settlement Agreement, the text of the Note Conversion Agreement and the text of
the Note Purchase Agreement, each of which were filed as Exhibits to AT&T's
Schedule 13D filed with respect to Interactive Network, Inc. on the date hereof.
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SIGNATURES OF REPORTING PERSONS
Dated: April 8, 1999.
AT&T CORP.
By:/s/ Robert S. Feit
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Name: Robert S. Feit
Title: Authorized Signatory
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