U S West and Time Warner to form strategic alliance: Baby Bell to pay $2.5 billion for stake and a partner in technology footrace

Article Abstract:

U S West Inc will invest $2.5 billion, purchasing a 25 percent stake in Time Warner Entertainment LP, which owns cable television operations. The investment positions the two companies as formidable competitors in interactive television and telecommunications. Time Warner will spend $1 billion of the money on an 'electronic superhighway,' and the rest will go for debt repayment. U S West will share responsibility for managing Time Warner's cable businesses and will help Time Warner adapt its networks to carry telephone traffic. This is the first major investment by a Baby Bell company in a producer of movies and television shows. The investment puts U S West into competition with other local telephone companies.

Radiotelephone communications, Television broadcasting stations, Motion picture & video production, Periodicals, Internet services, Investments, Time Warner Inc., Cable television, Interactive television, Strategic Planning, Cooperative Agreements, Cable Television/Data Services, Interactive Cable

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Baby Bells to post lackluster 4th period; recession, diversification costs cited; one-time charges seen

Article Abstract:

The Bell Regional Holding Companies (RBOCs), or Baby Bells, expect to report little growth for their fourth quarters. Most have acquisition, diversification and work-force reduction items to charge off. Demand for telephone services is slow in a climate of increasing competition, creating pressure to lower rates. The companies expect good results only in areas that are not regulated, such as directories and cellular services. The results are confusing to analyze because of the mixture of charge-offs, rate changes and earnings and the resulting mixture makes the RBOCs unattractive to investors. The predicted 4th qtr 1991 earnings for the seven companies range from 55 cents for GTE to $1.48 for NYNEX Corp.

Growth (Physiology), Cost control, Growth, Competition, Cost Reduction, Telecommunications Services Industry, Financial Report, Fourth Quarter

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Judge Greene sharply scolds U S West Inc.; order is due to Baby Bell's document withholding in U.S. contracts probe

Article Abstract:

Federal Judge Harold Greene has scolded U S West Inc for withholding documents from the US Department of Justice, which was probing US West's sale of switching services to the US government. Greene's scathing remarks were part of an order setting up procedures for U S West to turn over certain documents to Justice investigators. The Denver-based Baby Bell has not indicated whether or not it intends to appeal the order. For three years, the Justice Department has been investigating alleged improprieties in switching services contracts between the General Services Administration and U S West.

Cases, Investigations, United States. Department of Justice, Science and technology policy, Legal Issues, Government Contracts, Confidentiality, Greene, Harold, Investigation

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