August 03, 1999 18:23
Insight Confirms Source Commitment
NEW YORK--(BUSINESS WIRE)--Aug. 3, 1999--As previously reported, Insight Communications Company, Inc. (Nasdaq: ICCI) has agreed to purchase a 6% interest in Source Media, Inc. (Nasdaq:SRCM) for $12 million. The purchase is priced at $14.25 per share. Insight also will invest an additional $13 million to form a 50/50 joint venture with Source to develop and distribute the Interactive Channel. As part of the transaction, Insight will receive warrants in Source Media that would increase its stake in Source to a fully-diluted 20%, if exercised at $20 per warrant.
"Despite the recent drop in the stock price of Source, we reconfirm our fundamental and unwavering belief in Source's business prospects which remain unaltered," stated Michael S. Willner, Insight's President and CEO. "We see absolutely no reason to alter the transaction in any way due to these unrelated market conditions. We have been providing LocalSource to our customers in Rockford, IL on our digital platform since April and our customers are using this rich resource at levels well beyond our expectations. We fully intend to roll out this service throughout our systems and to aid in offering it to our cable operator colleagues who, like us, are now launching their digital services."
Insight is in the process of becoming the 8th largest cable operator in the United States when all previously announced transactions have closed. The company will own or operate systems in Indiana, Kentucky, Ohio, Illinois, Georgia, and California.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Insight Communications' business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Registration Statement on Form S-1.
CONTACT: Insight Communications Company, New York
Colleen Quinn, Corporate Relations
Kim Messina, Public Relations
(212) 371-2266
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