TVG exercises Youbet option

Television Games Network bought 17 percent of the shares in Youbet.com on Thursday as part of a year-old agreement between the two companies.

TVG, which is owned by Gemstar-TV Guide, bought the 3.9 million shares for one-tenth of a cent each. TVG was given an option to buy the shares in an agreement the two companies reached last year that allows Youbet to take bets on TVG partner tracks.

TVG has a second warrant to purchase 51 percent of the stock in Youbet.com. That warrant allows TVG to buy the stock at approximately $2.50 a share; Youbet's stock currently trades at approximately 73 cents.