After nearly a year of looking for a buyer or an equity investor, Source Media, which sought to forge a niche in the interactive media space, has terminated its operations. Insight Communications last week said it has taken full control of SourceSuite LLC, the interactive digital TV joint venture it formed with Source Media. In exchange for Source Media's 50% interest, Insight tendered all its 12% senior secured notes it had been issued by Source Media. Insight deploys SourceSuite's interactive programming application and services to its digital cable customers.

Source Media also sold off certain assets of its network business to BlueStreak Media, effective March 15, for $245,000 in cash and a promise of 5% of the revenue it earns over the next year to fulfill certain contracts, the companies said.

Source Media will use any remaining cash to wind down its operations, a process the company expects will be wrapped up by the end of this month. After that, its remaining cash will go to its bondholders. Source Media had been looking for financing since last May, when it defaulted on a $5.3 million interest payment on $88.5 million in long-term debt.

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