Microsoft Forms WebTV Partnership

Microsoft Corp. and Scientific-Atlanta Inc. said they will team to provide Microsoft’s WebTV Network service to cable television companies for use on Scientific-Atlanta’s set-top boxes. The world’s biggest software maker said the companies also will collaborate on the design of a next-generation set-top box using Microsoft’s Windows CE operating system. WebTV lets TV viewers access the Internet via a set-top box so they can “surf” between TV programs and related Web sites. It also provides online services such as e-mail and shopping. Alan Yates, WebTV platform marketing director, said the agreement increases the potential market for WebTV, which has yet to sign a distribution agreement with cable operators. Shares of Redmond, Wash.-based Microsoft fell $2.75 to close at $126.75 on Nasdaq. Scientific-Atlanta, based in Norcross, Ga., rose $2.63 to close at $21.50 on the NYSE.