Audiohighway, Warner Sign Deal:

Audiohighway.com, which lets users download and play back audio content from the Internet, said it will pay Time Warner Inc.’s Warner Music Group for the right to offer Warner-controlled videos from its U.S. Web site. Terms weren’t disclosed. As part of the nonexclusive licensing agreement, Warner Music will purchase about a 2% stake in Audiohighway.com. The shares of Audiohighway.com rose 88 cents to $2.91 on Nasdaq. Before Friday, the shares had lost about two-thirds of their value this year. On the New York Stock Exchange, shares of Time Warner rose $1.31 to $82.06. Audiohighway.com, with 1999 sales of $2.1 million, offers a library of free audio content that can be streamed to personal computers for listening. Visitors to the Cupertino, Calif.-based company’s Web site can access thousands of hours of music, audio books, news, entertainment, education and other information.