Microsoft billionaire buys Dallas cable-TV operator: Paul Allen's first foray into 'wired world.' (Marcus Cable) (Company Business and Marketing)

Article Abstract:

Microsoft co-founder Paul G. Allen announced that he had acquired Marcus Cable for an estimated $1.3 billion. The move would allow Allen to expand his entertainment and high-technology holdings by gaining his first major direct link into peoples's homes. Allen appears to siding with cable TV in its duel with local telephone companies to deliver high-speed Internet access. The transaction is worth $2.275 billion, including assumption of debt, according to Allen and Marcus. Dallas-based Marcus, in a filing with Federal regulators earlier in Apr 1998, reported long-term debt of approximately $1.5 billion at the end of 1997. Marcus CEO Jeffrey A. Marcus, who owned 14% of the company's stock according to the filing, said he would retain an undisclosed interest. Marcus, the 10th-largest cable TV operator, serves about 1.2 million homes in 18 states.

Management, Allen, Paul (American entrepreneur), Marcus Cable Company

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Cable companies try a revolution, again

Article Abstract:

At Home, a cable television company controlled by TCI, put nine million shares of its stock up for sale on Jul 11, 1997. The company had one the most successful public offerings in 1997. The shares were offered at $10.50 and hit $22.50 before closing at $17. The company intends to offer Internet access through its cable television wires. The coaxial wires used to deliver cable television will allow access to the Internet a speeds far greater than available with regular phone wires. Despite the success of the company's public offering it is uncertain whether cable companies will be willing to spend hundreds of millions of dollars to equip their networks for Internet traffic. It is also not certain if consumers will be willing to pay twice as much on their cable bills in order to access the Internet.

Finance, Internet services, Initial public offerings, Cable television/data services, Company public offering, At Home Corp.

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AT&T has set itself some tough challenges

Article Abstract:

Industry analysts believe that AT&T Corp.'s chairman, C. Michael Armstrong, may have bitten off more than AT&T can chew with his latest bid for Mediaone Group for $53 billion. AT&T is currently undergoing regulatory review for its acquisition the number two cable operator Tele-Communications Inc., a significant and pricey acquisition on its own, but coupled with the Mediaone acquisition represents a huge foray into the cable industry, an industry that AT&T does not have much experience with. AT&T is also working with its partner British Telecommunications on a joint venture in Japan, to make itself a presence in the global leader in telecommunications market.

United States, Asset sales & divestitures, Acquisitions & mergers, Wired Telecommunications Carriers, COMMUNICATION, Communications, Broadcasting and Telecommunications, Cable Television Systems, Telephone Communications, Telephone communications, exc. radio, Telecommunications services industry, AT&T Corp., T, Telephone services, MediaOne Group Inc., UMG

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