Odds Improving For Prodigy Sale

The sale of Prodigy Services Co. to a team of investors led by its president Ed Bennett appears closer to happening, although a source involved in the deal said no final decision had been made and seemed unlikely this week.

A technology industry journal, Interactive Week, reported on its on-line service that a deal would be announced on Friday.

The report Tuesday, which did not identify sources, placed the value of the deal between $100 million and $250 million, although that would be sharply less than the comparable value of Prodigy rivals America on-line and CompuServe in the stock market.

Representatives of Prodigy and its owners, IBM and Sears, declined comment on the report. But a source close to the companies said that although talks with Bennett continue, it would be a surprise if a deal is completed by Friday.

Bennett and other Prodigy managers hired investment bankers last month to try to launch a buyout and possibly take Prodigy public. The service needs to invest heavily in new systems and marketing to keep pace with its rivals.

Prodigy was the second-largest on-line service in early 1995, following CompuServe, but has since fallen to No. 3 behind American on-line and CompuServe.