Lots of others in play too.......
mercurycenter.com
FRANKFURT, July 26 (Reuters) - Cable television has suddenly become a hot investment in Europe, and Microsoft Corp is supplying a lot of the heat.
In the latest deal, Britain's NTL Inc on Monday agreed to pay about 6.3 billion pounds ($10.03 billion) for the cable holdings of rival Cable & Wireless Communications Plc.
The transaction, if completed, would turn NTL into a new UK giant, with 2.8 million customers and a network that passes more than half of British households.
It would also prove a boon for Microsoft, which owns five percent of NTL and is acquiring stakes in European cable systems in a bid to become the supplier of software that controls interactive TV services of the future.
''They are interested in cable because this is where part of online services appear to be heading,'' said Neil Bradford at Fletcher Research in London. ''If they own part of these guys, their standards are more likely to be adopted.''
Microsoft's Windows, Office and Internet Explorer programmes already dominate the personal computer software business. But founder Bill Gates fears increasing availability of high-speed Internet access over cable TV networks could open a door for competitors in a new world combining the Internet and TV.
The company has developed a set of programmes, called MSTV, specifically for interactive TV, although it has won over few backers in Europe so far.
Microsoft's European strategy parallels efforts in the United States, where its $5 billion investment in AT&T Corp has helped fuel the phone company's string of cable purchases.
It also greased AT&T's switch to Microsoft Windows CE as the preferred software for set-top boxes that will allow its cable customers to surf the Internet.
In the CWC purchase, the software powerhouse was a passive participant. NTL clinched the deal after getting a $5.5 billion investment by France Telecom SA.
But Microsoft may play a much larger role in the next one. Many analysts think NTL will now try to link up with Telewest Communications Plc, Britain's second largest cable group and NTL's rival in the CWC bidding.
Microsoft owns a controlling 29.9 percent stake in Telewest.
At a news conference NTL Chief Executive Barclay Knapp said further industry consolidation ''would be desirable under the right terms,'' and added that Microsoft will ''definitely'' play a role in future discussions.
Microsoft may also soon buy its way into Germany, and possibly Switzerland. The company has already confirmed it is talking to media group Bertelsmann AG about a joint bid for stakes in some of the nine regional German cable networks that Deutsche Telekom AG is spinning off.
Deutsche Telekom has requested firm offers by August 13.
Bankers also believe Microsoft is eyeing the sale of Cablecom Holding AG, which has been put up for sale by owners Swisscom AG, industrial group Siemens AG and German utility Veba AG.
In March Executive Vice President Bob Herbold said Microsoft did not want to acquire European cable companies, but intended to provide them with backing to speed up development of Internet and interactive TV services.
Europe has lagged the United States in Internet use, but has a well developed market for digital TV.
Microsoft started its push into European cable in January when it took a 7.8 percent stake in United Pan-European Communications NV.
Based in Holland, UPC has 5.5 million cable customers in 10 European countries and Israel.
|
