Microsoft and Compaq to buy 10% stakes in Road Runner

Article Abstract:

Microsoft and Compaq both announced a $212.5 million investment in Road Runner for a 10% share of the high-speed cable-modem venture. Time Warner, Time Warner Entertainment/Advance-Newhouse and the Mediaone Group in 1997 introduced Road Runner, which claims more than 90,000 subscribers. By comparison, At Home reaches 110,000 customers but claims to avoid duplicating Road Runner's technology. The moves by Microsoft and Compaq represent their desire to accelerate Internet connections for home users, according to analysts. Plans call for Microsoft to offer its Internet, client, server and application software expertise. Compaq, meanwhile, promised to manufacture cable modem-installed PCs by the end of 1998. Leading PC companies are investing in cable modems and ADSL technology in hopes of breaking the current bandwidth bottleneck.

Modems, 301-1200 bps, Compaq Computer Corp., CPQ, Microsoft Corp., Cable modems, Company investment, Investments, MSFT, Television equipment industry, ServiceCo L.L.C.

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2 computer modem makers abandon talks on a merger

Article Abstract:

Boca Research has discontinued negotiations to acquire Hayes Microcomputer Products. On Jun 29, 1995 the companies had announced their intention to merge. Boca decided to stop pursuing the acquisition because Dennis Hayes, founder of Hayes Microcomputer Products, was reportedly seeking other corporations to purchase his company and apparently was not committed to the merger. Hayes responded that he was merely keeping his options open by contacting investors interested in purchasing a minority stake in the company and is still willing to negotiate with Boca. Also, the merger would have placed the current Boca management team in charge of the companies which may have interfered with Hayes' management style. Hayes now faces a September 21 bankruptcy court imposed deadline to arrange another transaction.

Data Modems, Mergers, acquisitions and divestments, Modems, Hayes Microcomputer Products Inc., Company Acquisition Merger, Company Business And Marketing, Boca Research Inc., BOCI

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Routing makes Cisco Systems a powerhouse of computing

Article Abstract:

Cisco Systems is the leading provider of networking equipment and its shareholders are benefitting from its increasing market share. Cisco provides a single networking standard that makes it easier for companies to manage their networks. The company's 1st qtr 1997 revenues increased 80% to $1.43 billion and a 77% increase in profits. Cisco's stock price has more than doubled in the past year. The company specializes in network routers and currently holds 80% of that market. Cisco currently earns 44 percent of the networking industry's profits, a segment that is the fastest-growing market in the computer industry. The company's goal is to define the next era of computing, shaping it the way IBM influenced the mainframe market and Microsoft the software industry.

Telephone Apparatus Manufacturing, Data Communications Equip, Planning, Market share, Data communications equipment, Cisco Systems Inc., CSCO, Growth, Company analysis, Company market share, Company growth, Company Business Forecast Projection

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