On Monday, December 20, 1999, MTV Networks,

the music/entertainment cable television and Internet business, announced

it would split its Net company into two separate groups. MTV Networks

On-line will be divvied up into the MTVi Group, which includes VH1.com,

MTV.com and SonicNet.com, and Nickelodeon On-line, which includes nick.com,

nickjr.com, tvland.com, nick-at-night.com, gas.nick.com, teachers.nic.com

and redrocket.com. "Executives in the past have stated that both companies

would be going public," said a spokesman for MTV Networks. "This move

obviously strengthens both companies," he said, adding that this was the

next step down the path of an IPO. Nicholas Butterworth will continue to

serve as president and chief executive of The MTVi Group. Fred Seibert will

helm Nickelodeon On-line. Both execs will report to Tom Freston, chairman

and CEO of MTV Networks. This action comes in the wake of a federal

anti-trust probe by the U.S. Justice Department on the company. Practices

such as demanding exclusive rights to air music videos and setting unfair

rates due to their monopoly of the music video market are issues being

investigated by the Justice Department.