NBC is close to selling Microsoft a cable stake
Article Abstract:
Microsoft will buy a 50% stake in NBC's America's Talking cable channel, provided the two companies can resolve financial snags that have stalled negotiations. Estimates place Microsoft's investment at $100 million for its partnership in the channel, which NBC would continue to run. The companies will rename the channel to reflect a new orientation to an all-news format in order to compete with Cable Network News (CNN). America's Talking is seen in some 20 million houses, while CNN appears in 67 million. NBC distributes America's Talking through contracts negotiated with cable operators who carry the signal. Some fear that these contracts may prevent NBC from changing the channel's format to all news, since NBC's contracts for its CNBC channel imposed format restrictions. Insiders claim that the America's Talking contracts are broad enough to allow the format change. Microsoft buys content from NBC for the Microsoft Network.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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Microsoft and NBC News hold a little satellite chat: will such razzle-dazzle sway viewers?
Article Abstract:
Microsoft and NBC announce their partnership in an all-news cable channel with a satellite videoconference between Microsoft Chmn Bill Gates and NBC news anchor Tom Brokaw. The new channel will be called MSNBC, and it represents an attempt to challenge Cable Network News (CNN), the only all-news cable channel to date. MSNBC will be supplemented with an interactive, on-line news service. Microsoft invested $220 million for 50% of the cable channel, formerly an all-talk channel known as America's Talking. The transition from talk shows to news should be complete by the middle of 1996. Some observers believe that the cable operators who carry the channel will attempt to block the format change, but NBC officials believe their current contracts support the change. NBC's move makes financial sense, since the company can expand its existing news organization at little cost and already has 20 million viewers for the cable channel.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1995
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AT&T is seen forging link to Microsoft; also to get Mediaone in a swirl of deals
Article Abstract:
Microsoft is likely to invest $5 bil in AT&T. In exchange, AT&T's planned broadband service to homes would feature some version Microsoft's software. In addition, AT&T's $58 bil bid for cable operator MediaOne appears to have defeated the Comcast offer. Comcast was in talks with both Microsoft and AOL to bolster its $53 bil offer for Mediaone. If Mediaone and AT&T combine, Comcast would receive a $1.5 bil break off fee, which it would apply to the purchase of AT&T cable assets. Sources say AT&T has offered to sell Comcast $9 bil worth of its cable business, about 2 million customers.
Publication Name: The New York Times
Subject: Business, general
ISSN: 0362-4331
Year: 1999
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