TCI, Texas' Bass agree to form cable venture

Article Abstract:

TCI Communications has formed a cable partnership with Keystone to own and operate cable systems serving 660,000 Midwestern customers. Keystone is a group that includes Robert M. Bass, a Texas investor. The deal represents the latest in a series of TCI moves since June 1997 to lower its debt and non-dominant cable systems. TCI, which will drop almost $1 billion in the transaction, will have recorded a $9.9 billion debt. By comparison, the company's debt stood at $14.1 billion at the end of June 1997. The number of TCI subscribers, meanwhile, has tumbled from 14.2 million earlier in 1997 to the current level of about 11 million. Terms call for TCI to control 50% of the new company's equity, with Keystone holding a 39% stake and Bresnan Communications holding about nearly 11%. System ownership and operation will cover Michigan, Wisconsin, Minnesota, Georgia, Nebraska and Mississippi, plus existing systems under a TCI-Bresnan partnership.

Contracts, Contract agreement, Cable television/data services, TCI Communications Inc., Keystone Inc. (Billings, Montana), Bresnan Communications, TCICP

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Allen to pay record sum for cable firm

Article Abstract:

Technology billionaire Paul Allen acquired cable system Charter Communications for $2.5 billion in cash as well as the assumption of $2 billion in debt. The record industry price represents Allen's latest effort to assemble cable, entertainment and other new media assets. Allen, a Microsoft co-founder, has envisioned cable systems as playing a key role in delivering linked technologies. The deal also illustrates skyrocketing cable systems value since 1997, as computer companies and telephone companies are targeting cable to deliver home Internet and telephone services. Plans call for combining St. Louis-based Charter Communications, which has 1.2 million subscribers in 19 states, with Marcus Cable. The new company would emerge as the seventh-largest cable operator with 2.4 million customers. Allen is expected to widen his influence by doubling his cable holdings to around five million subscribers, according to cable executives.

Cable TV Networks, Investments, Cable networks (Television), Allen, Paul (American entrepreneur), Charter Communications Inc.

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USA Networks, stymied by opposition from holders, seen giving up Lycos bid

Article Abstract:

Due to shareholder opposition, USA Networks has decided that maybe it is not a good idea to merge with Lycos after all. Morgan Stanley has been hired to perhaps find other buyers, but there could be the possibility of USA Networks reworking the bid so that it is more pleasing to the shareholders.

United States, Asset sales & divestitures, Acquisitions & mergers, On-Line Information Services, Videotex & Teletext, Telegraph & other communications, Online services, USA Networks Inc., Lycos Inc., LCOS

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