<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8klic010204.txt
<DESCRIPTION>FORM8-KLIC010204
<TEXT>


                       SECURITIES AND EXCHANGE COMMISSION


                             WASHINGTON, D.C. 20549


                                    FORM 8-K

                 CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934


        Date of Report (Date of Earliest Event Reported) January 2, 2004


                          LYNCH INTERACTIVE CORPORATION
                          -----------------------------

             (Exact Name of Registrant as Specified in its Charter)


     Delaware                    1-15097                         06-1458056
     --------                    -------                         -----------

 (State or other             (Commission File                   (IRS Employer
  Jurisdiction of                Number)                        Identification)
  Incorporation)


  401 Theodore Fremd Avenue, Rye, New York                          10580
  ----------------------------------------                          -----

 (Address of Principal Executive Offices)                         (Zip Code)


        Registrant's Telephone Number, Including Area Code: 914-921-8821


<PAGE>


ITEM 5.  Other Events and Required FD Disclosures.
         ----------------------------------------

On December 31, 2003, Lynch Interactive Corporation  ("Interactive") closed on a
transaction  that it  described  in its Form 10-Q,  issued  November  14,  2003,
whereby  Sunshine PCS  Corporation,  in which  Interactive  has  investments  of
preferred stock,  common stock and warrants,  has sold its three PCS licenses to
Cingular  Wireless  for a total  of  $13.75  million.  As  part  of  this  sale,
Interactive  agreed to accept  $7.6  million in exchange  for all its  preferred
stock and warrants of Sunshine.

Beginning in 1996,  Interactive made cumulative cash investments in these assets
of over $20 million.  At September 30, 2003,  all of the  preferred  stock had a
liquidation  value of $26.4 million.  Interactive's  current book value in these
investments  is $3.6  million as a result of  previously  recorded  reserves for
impairments.  The final  accounting for this  transaction will take into account
the  proceeds  received  by  Interactive  as  well  as  certain  indemnification
obligations.

While  there  is a  sizeable  economic  loss on the  sale,  because  Interactive
provided a reserve  for  impairment  for $17  million of its costs,  Interactive
could recognize a book profit of up to $4 million.


<PAGE>


                                    SIGNATURE

     Pursuant  to  requirements  of the  Securities  Exchange  Act of 1934,  the
Registrant has duly caused this current report to be signed on its behalf by the
undersigned hereunto duly authorized.

                                  LYNCH INTERACTIVE CORPORATION


                                  /s/Robert E. Dolan
                                  ------------------
                                  Robert E. Dolan
                                  Chief Financial Officer


Date: January 2, 2004

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</DOCUMENT>