Interactive Multimedia

And now, the morning after. The business world's euphoria over the proposed merger of America Online Inc. and Time Warner Inc. began to dissipate Tuesday, if modestly, as the scale of the deal--and of its potential obstacles--grew clearer.

The breathless talk a day earlier of America Online and Time Warner becoming the world's premier media company faded quickly Tuesday as shares of both companies slid hard. In late trading Tuesday, AOL was off $8.63 to $64 and Time Warner was down $6.25 to $86. On Monday, AOL had eased $1.13 while Time Warner soared $27.50. As institutional investors mulled the deal Tuesday, there was widespread agreement that the proposed alliance makes sense long-term.

The nation's top securities regulator on Tuesday took the unusual step of praising the America Online-Time Warner merger deal--and its accounting method. Securities and Exchange Commission Chairman Arthur Levitt, in an interview with Reuters, said he believes that AOL and Time Warner have recognized each other's qualities. "I thought it was smart," he said of the deal. Levitt rarely comments on the merits of mergers.

The proposed merger of America Online and Time Warner Corp. marks the passage of the Internet from an exotic technology into a mass media industry. It means that AOL, the Internet service provider that has 20 million customers, will acquire in Time Warner's cable systems a more expansive and easy-to-use system of distributing news and entertainment material to consumers and homes.

Hasbro Inc. announced plans to offer popular family games such as Monopoly, Clue, Risk and Battleship to online players through a three-year licensing and distribution partnership with Go2Net Inc. "Games are proving to be the killer application on the Internet," said Alan G. Hassenfeld, chairman and chief executive of Pawtucket, R.I.-based Hasbro. "Our vision is to create the best online games portal, offering mass-market entertainment with branded games for every member of the family."

Liberate Technologies, a developer of software for Internet-linked appliances, today will announce a licensing deal to supply interactive software to cable provider Star TV in Hong Kong. Liberate's software lets users shop, surf the Web and send e-mail via their TV sets. Star TV, a subsidiary of Rupert Murdoch's News Corp., is a leading cable provider in Asia and could represent a significant beachhead there for San Carlos, Calif.-based Liberate--an offshoot of Oracle Corp.

Microsoft Corp. plans to make a television pilot program based on its online magazine Slate, hosted by ex-CNN pundit Michael Kinsley, as the software giant moves further into TV. The pilot would be produced with Seattle public-TV station KCTS and made available on the Internet, using Microsoft's WebTV technology that lets users toggle between a TV and a personal computer. The half-hour weekly program would feature Slate contributors and guests discussing news, politics and culture.

Angling for the hearts and wallets of "Generation Y," Southern California's hottest computer-chip maker and one of its oldest surfwear companies said Sunday they have formed a new-media company combining "Jetsons"-style technology and extreme sports. Broadband Interactive Group--Big for short--combines Broadcom Corp.'s technology with upstart media ventures spun off from Gotcha International. They include three magazines, a Web site and an extreme-sports show on Fox Sports West.

The whole idea of an engagement ring can be fraught with conflict. Should the groom buy one before proposing? If he asks his fiancee to choose, should she worry about how much it will cost? And would it be wise to marry someone who doesn't? Once that is all settled, next comes the design of the ring. That used to require going out and finding a jeweler. Now there is a Web site.

It's your wedding day. You have the dress, exquisite down to the last pearled button. You've got the shoes, which look great and are comfy enough to wear as bedroom slippers. You've got the hair, perfected by the stylist who has done your hair for every party or special occasion since your senior prom. So what about your makeup? Take a chance on a make-over and you may risk emerging with a face like a Vegas showgirl. Luckily, there's an alternative.