NEW YORK-Rare Medium Group Inc. said it will provide Motient Corp. with up to $50 million on a short-term basis by purchasing Motient’s stock.
Company officials said the move could promote a broader alliance between the two companies.
“We have had constructive discussions with Motient regarding strategic alternatives and hope to complete those in the near term,” said Glenn S. Meyers, Rare Medium’s chairman and chief executive officer.
Meyers also said this transaction and the overall conditions in the telecommunications sector forced Rare Medium to recently reduce its work force by 20 percent.
Rare Medium provides Internet professional services and makes strategic investments. Its stock was down about 12 percent to $1.34 per share. Motient’s stock was down almost 30 percent to 81 cents per share.
