Comcast is seen as unlikely to raise bid for Mediaone
Article Abstract:
Comcast Corp. appears unlikely to counter AT&T Corp.'s surprise $58 billion bid for Mediaone Group. While the company has not ruled out a counter offer, analysts believe the cash and stock offer by AT&T is too much higher than Comcast's all-stock bid for the cable-television operator. AT&T's offer includes about $20 billion in cash and also includes a provision that if the value of its stock drops, it will cover up to a 10 percent drop with additional cash. Comcast would have trouble raising enough money to compete with AT&T's offer, but could raise some cash by selling some of its assets, or by looking to Microsoft Corp., which already has invested $1 billion in the cable firm. If AT&T acquires Mediaone, the FCC may force the phone company to divest certain assets, since regulations stipulate that no single cable company may serve more than one-third of the nation's 95 million homes with cable access. AT&T says the acquisition would give it access to around 26 percent of the homes able to receive cable. Comcast had hoped to acquire Mediaone to become one of the three largest cable companies.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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Partner joins Disney-backed phone group in TV venture
Article Abstract:
Southern New England Telecommunications (SNET) plans to invest an undisclosed amount in Americast, choosing the digital TV venture over its rival Tele-TV. SNET, which offers local phone service in Connecticut, will begin providing Americast TV services early in 1997. Officials involved in the deal claim that SNET had considered partnering with Tele-TV, which plans to offer digital cable TV to New York and New England, essentially surrounding SNET. However, SNET decided to go with Americast because that company enjoys strong support from Disney as well as its other backers, Ameritech, SBC Communications, GTE and BellSouth. For its part, Americast believes that SNET will give them a presence in media and advertising communities where it previously was unknown. Tele-TV says it remains well ahead of Americast in the effort to develop the technology to deliver digital cable TV and that recent cuts in its operating budget will not delay its services, which will debut in 4th qtr 1996.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1996
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A Time Warner-US West split would be costly
Article Abstract:
US West has filed suit against Time Warner, claiming that company is violating the conditions of their merger by proposing the acquisition of Turner Broadcasting, a move that could lead to the dissolution of the original merger. Time Warner has responded with a suit against US West, but the roots of the problem lie in disputes over the value of US West's 25.5% stake in Time Warner. In 1993, US West paid $2.5 billion for an interest in Time Warner's film studio, HBO cable network and cable systems that the company claims is now worth $4 billion. Time Warner states the US West stake is worth only $3 billion to $3.4 billion. In Apr 1995, Time Warner offered to increase US West's cable holdings in exchange for its relinquishing claims to the film studio and HBO. US West demanded a 61% share in the cable systems as well as operating control, but the deal fell through when Time Warner demanded that the companies jointly control the systems.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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