MCI agrees to inject as much as $2 billion in News Corp. in data highway venture; investment over four years to create, distribute digital network products
Article Abstract:
MCI will invest up to $2 billion in media content giant News Corp in a deal that will benefit both parties in the coming information content and delivery explosion. Under the terms of the deal, MCI will buy $1 billion in News Corp preferred stock. Eventually MCI will be expected to purchase an additional $1 billion in preferred stock, which will raise MCI's ownership to 13.5% of News Corp. MCI would be the media company's largest outside investor. When the MCI investment is completed, the two companies will each invest $200 million to form a global joint venture. The alliance marries MCI's expertise in digital delivery technology and News Corp's expertise in content creation. The joint venture will use MCI's digital network to distribute News Corp's business information first, and eventually moving to entertainment and news distribution.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1995
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MCI is awarded $80 million job by J.P. Morgan; contract makes a victory over rivals AT&T, BT in global service arena
Article Abstract:
MCI Communications Corp beats out British Telecommunications PLC and AT and T, winning an $80 million, five-year global services pact from J.P. Morgan and Co. Under the outsourcing contract, MCI will manage J.P. Morgan's global private network and provide international intra-company data and video transmission to the banking company and its subsidiaries. British Telecom and AT and T will continue to run two international data networks for J.P. Morgan. J.P. Morgan will be a key reference for MCI as it seeks to increase its share of the fast-growing outsourcing market for communications services. Market research company Yankee Group estimates that the $2 billion outsourcing industry is growing by one-fifth a year. MCI's victory probably hurts British Telecom, which has been trying hard to expand beyond its London base, more than AT and T.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1993
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MCI signs a pact for Rolm to sell business services
Article Abstract:
Rolm Co is now an agent for MCI Communications Corp, signing a contract to market MCI's 800-number services, integrated voice/data communications and other business communications services. Rolm is an office equipment maker whose line includes telephone switching systems such as PBXs. The joint marketing agreement is an attempt to increase the presence of each telecommunication company in the small- to medium-size business market for long-distance services. Industry analysts, however, doubt that the effect will be substantial, despite attempts to have Rolm act as a total communications service supplier rather than just a PBX maker. The results of a two-month test project by the two companies show Rolm bringing in about $1 million in annual billings, even with customers receiving discounts on MCI services.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1991
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