Microsoft co-founder puts huge bet on cable-TV
Article Abstract:
Paul Allen's $2.78 billion investment to acquire control Marcus Cable indicates his belief that cable TV will most quickly deliver interactive services to consumers. The Microsoft co-founder said he is considering the purchase of other undisclosed US cable properties that can help deliver educational materials, Internet access, entertainment and sports content. Financial details include the assumption of about $1.2 billion in debt, which represents about 11 times Marcus's annualized cash flow, or slightly more than $2,500 a customer. By comparison, most buyers have been willing to pay $2,000 to $2,500 a customer. Allen has made other recent investment moves to accelerate his idea of creating a 'wired world.' He purchased a 4.3% stake in U.S. Satellite Broadcast, and paid $55.8 million in Mar 1998 to boost his stake in wireless-data-networking company from 33% to 49.5%.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Billionaire Allen to buy Marcus Cable
Article Abstract:
Marcus Cable has been acquired by computer billionaire Paul Allen for about $2 billion, in addition to the assumption of $1 billion in debt, according to people close to the matter. Insiders say Allen is acquiring Dallas-based Marcus Cable, the ninth-largest cable TV operator, to initiate a series of cable purchases. Allen then would create a big platform for offering Internet access and other new services over cable-TV lines into the home. The strategy could allow Allen to do business with former Microsoft partner Bill Gates, who also is attempting to capitalize on the cable TV market. Allen's purchase of Marcus Cable, an estimated 14 times trailing 12 months' cash flow, is expected to be announced today. The major Marcus Cable systems are in Indiana, Southern California, Alabama, Wisconsin, and Fort Worth, TX.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
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Liberty Media unit is set to develop interactive cable
Article Abstract:
Liberty Media Corp. is establishing a new unit that will develop interactive programming. The company is attempting to convert one channel on TCI systems into several digital channels. Liberty's actions would provide the company with a major interactive service launch platform. This would include home shopping, ticket-ordering, and banking.
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To establish a new unit that will develop interactive programming
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
ISSN: 0193-2241
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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