Rare Medium Invests in Motient

Rare Medium, a New York-based i-shop and incubator, said Tuesday that it has agreed to provide up to $50 million on a short-term basis to Motient, a provider of primarily B2B two-way mobile and Internet communications services. Rare Medium reps said the deal may eventually ?facilitate a broader alliance between the two companies,? but that there is no assurance than any pact will occur.

?We have had constructive discussions with Motient regarding strategic alternatives,? said Glenn S. Meyers, chairman and CEO of Rare Medium in a statement, ?and hope to complete those in the near term.? He said an alliance could allow Rare Medium to grow its e-business service offerings in wireless data and mobile Internet services.

Rare Medium said in light of the deal and ?overall conditions in our sector,? it recently laid off 20 percent of its staff ?to reduce costs and preserve capital.?