TECHNOLOGY - May 18, 1996

Cap Cities/ABC Buys Out Partner: The unit of Walt Disney Co. said it acquired Alameda-based Spectrum HoloByte Inc. in a sports video game venture the two companies formed last year. Terms were not disclosed. The equally owned enterprise, called OT Sports, was formed to develop interactive game software under the ABC Sports brand. Spectrum said it sold its 50% stake to focus on nonsports categories such as simulation, 3-D action and strategy games. Capital Cities Inc. said distribution of OT Sports products will now be handled by Disney Interactive. The first OT Sports product will be based on ABC’s “Monday Night Football.” OT Sports will continue to operate out of its offices in Hunt Valley, Md.