Oxygen Freshened By AOL TW Deal

NEW YORK — Oxygen Media is floating on air after receiving a major shot in the arm from AOL Time Warner.

The companies, which have an online strategic alliance, announced Tuesday a multiyear deal that calls for AOL Time Warner to make an equity investment in Oxygen and guarantees extensive cable distribution of Oxygen to 10 million predominantly analog Time Warner Cable subscribers in the third quarter of 2002.

Oxygen chairman and CEO Geraldine Laybourne said AOL Time Warner and Oxygen are developing a “deep strategic relationship on an ongoing basis.” “To me, the heart of this is that AOL Time Warner is the entertainment company that most understands the connection between the Internet and television — the reason we started Oxygen,” Laybourne said.

Neither the terms of the deal nor the amount of AOL Time Warner’s investment were released.