Sony plans to purchase a 5% stake in NextLevel

Article Abstract:

Sony intends to pay approximately $188 million for a 5% stake in advanced digital TV set-top box maker NextLevel System, according to executives familiar with the transaction. Financial terms would call for Sony to pay around $25 apiece for 7.5 million shares of NextLevel. The price would represent a 38% boost over NextLevel's closing price of $18.1875 in New York Stock Exchange composite trading on Jan 2, 1998, as well as surpass NextLevel's 52-week high of $21.50 by more than 16%. Sony in return would gain the right to distribute NextLevel set-top boxes throughout North America, according to the exectives. The new set-top boxes, not expected to reach the market until around early 2000, would contain far more memory and computer capacity than current models. A company official said Sony, which prevailed over Thomson Consumer Electronics for the NextLevel stake, would benefit by developing digital-TV technologies.

CATV Addressable Converters, Mergers, acquisitions and divestments, Company acquisition/merger

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NextLevel pact draws Sony Corp., Thomson-CSF unit

Article Abstract:

Sony and Thomson Electronics are competing for the right to distribute NextLevel Systems' advanced digital TV set-top boxes and possibly make a 5% to 10% investment in NextLevel, according to sources. NextLevel would benefit by gaining access to either suitor's retail outlets such as Circuit City Stores or Tandy's Radio Shack subsidiary. Sony and Thomson could attain their belated goal of joining the US cable industry shift to digital TV. NextLevel apparently is leaning toward an arrangement with Sony because of the Japanese electronic company's brand recognition. NextLevel, which soonplans to change its name back to General Instrument, also is discussing the possibility of Sony or Thomson Electronics investing several hundred million dollars in the company, according to sources.

Electronic computers, Information appliances, Investments, Distribution, Digital television, Set-top boxes, Set-top internet box, Cooperative agreement for product distribution, Thomson Electronic

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TCI Group tallies digital subscribers at 1 million and posts $52 million net

Article Abstract:

TCI Group is making progress ahead of schedule getting about 7.4% of its customers upgraded with digital cable TV boxes. That percentage is probably just under 10,000 new boxes per day and puts it at or near the 1 million digital customers mark. At the same time the company announced it made a profit of $52 million in the third quarter. As TCI gets ready for a merger with AT&T it is also making plans to get its customer base 80% ready for digital in five years.

United States, Sales, profits & dividends, CATV Equipment, Planning, Finance, Financial planning, Abstract, Cable television equipment, TCI Group

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