Media convergence; bold vision of one-stop shopping propels mergers of phone, cable and TV providers
AT&T's plans to buy Tele-Communications Inc (TCI) is another indication of the trend of telecommunications, media and cable television companies becoming increasingly dependent on digital technology and pushing to become leaders in the new information age. By acquiring TCI, the second largest cable television company in the US, AT&T hopes to own an all-in one digital delivery system to the over 16 million wired US households that have more than one phone lines and PCs, as well as cellular phones and pagers. The number of American households with computers reached 42% in Jan 1998, compared with 31% in 1995. Over the same period the households online have grown from 7% to 23%. As more people go online, electronic commerce also increases. Forrester Services estimates that online travel services tripled in 1997 to $654 million and is expected to reach $7.4 billion by 2001.
Publication Name: The New York Times
Subject: Business, general
US West may give more media stock for Continental Cablevision takeover
US West is adding nearly 20 million more shares of stock to the pot in order to close its $5.3 billion acquisition of Continental Cablevision Inc. The move is an effort to compensate for a 30% decline in the price of US West's stock since the agreement was announced in Feb 1996. The deal includes $1 billion in US West's preferred stock, $1 billion to $1.5 billion in cash, and media-group stock worth $2.8 billion to $3.3 billion. The companies originally established a price of $24.50 for each media share, but agreed that either company could cancel the deal if the share price rose or dropped by 15%. Terms of the deal could still change, but Continental founder and Chmn Amos Hostetter claims this is the final deal. The purchase is expected to close by the end of Nov 1996.
Publication Name: The Wall Street Journal Western Edition
Subject: Business, general
- Abstracts: US West's Continental ambitions; thanks to communications law, a Baby Bell presses to be a cable power. Have's and have-not's revisited: rich nations talk high-tech, but the poor live no-tech
- Abstracts: US West wins federal endorsement of long-distance plan. Telecommunications bill signed, and new round of battles starts
- Abstracts: Coming soon to computers everywhere, a world's fair. 3-way alliance may prove a formidable threat to Microsoft
- Abstracts: When pointing and clicking fails to click; more and more questions, and employees, at computer help services. I.B.M. opens the doors of its research labs to surprising results
- Abstracts: Investment co. (foreign) industry. part 2