Comcast's $1.1 billion phone deal: Metromedia selling a cellular operation

Article Abstract:

Comcast Corp acquires Metromedia Co's cellular radio operations for $1.1 billion. Comcast pays in preferred stock, special common stock and cash. This continues Metromedia's divestment of its cellular telephone franchises in markets around the US. Metromedia Chmn John W. Kluge indicates that the end result of these sales is a $3 billion return on the telecommunications, motion picture and restaurant company's $20 million investment in this industry, beginning in the early 1980s. Metromedia retains a $90 million interest in the New York City cellular market, but no longer owns what was 56 percent of the Baltimore market, 50 percent of Boston, 100 percent of Chicago, 49.5 percent of Philadelphia and part of the Washington, DC market. The purchase expands Comcast's role in cellular telephone services; it already owns The American Cellular Network Corp, which operates in Delaware and New Jersey.

Cable and other pay TV services, Management, Mergers, acquisitions and divestments, Cellular telephones, Wireless telephones, Comcast Corp., Divestiture, Divestment, Cellular Radio, Acquisition, Franchise, Telecommunications Services Industry, Metromedia Co.

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U S West will buy into Time Warner; a $2.5 billion investment to create new cable services

Article Abstract:

US West invests $2.5 billion for 25 percent of Time Warner Entertainment, a precursor to the joint development of cable services that will allow customers to access entertainment and information services on demand. US West is one of the seven Bell regional operating companies with 25 million customers, while Time Warner is the country's second largest cable provider, servicing seven million customers. The agreement paves the way for an electronic superhighway that will provide services to homes. While cable and telephone companies are traditionally rivals, the US West-Time Warner alliance benefits both. Time Warner is still saddled with a $13.8 billion debt and the investment infusion is useful; US West's experience with advanced switching systems makes the company a formidable player in the telephone industry since advanced cable systems can handle telephone calls.

Telephone communications, exc. radio, Motion picture & video production, Telecommunications services industry, Internet services, Cable television, Contracts, Investments, Information services, U S WEST Inc., Product development, Time Warner Entertainment Company L.P., Cooperative Agreements, Cable Television/Data Services

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