As part of the Rhapsody America JV between MTVN (NYSE: VIA) and RealNetworks, (NSDQ: RNWK) MTVN agreed to contribute a five-year $230 million note, obligating RNWK to buy $230 million worth of advertising MTVN cable channels. Essentially, it was a mechanism to guarantee and quantify MTVN’s contribution of advertising inventory. In its 10-Q filed today, RealNetworks states that as of September 30th (the end of the quarter), MTVN has made total payments on the note of $8 million and that RealNetworks has booked an equity gain of $4.1 million (based on its 51 percent holding in the JV). Other financial details:
– MTVN has contributed $7.68 million in intangible assets, $4 million of which is its trade name and trademarks. Technology and Subscribers accounted for $1.9 million and $1.68 million respectively.
– MTVN and RealNetworks have additional funding obligations of $16.7 million and $17.4 million respectively in December 2007.