Great news for SFA!
04:19 PM ET 01/10/00
FOCUS-Motorola, Scientific-Atlanta stock up
CHICAGO, Jan 10 (Reuters) - Shares in Motorola Inc.
and Scientific-Atlanta Inc. , both of which make
television set-top boxes, shot higher on Monday amid
expectations that America Online Inc.'s deal to buy
Time Warner Inc. could speed demand for Internet access
via television.
"I think the implication is that they'll want to merge the
Internet experience with television," said Mark Roberts, a
technology analyst with First Union Securities.
Shares of Motorola were up 10-15/16 at 139-7/8 in late
afternoon New York Stock Exchange trading, after touching a
high of 143-5/8 earlier, while Scientific-Atlanta's stock was
up 8-5/16 at 59-3/16, after reaching 59-1/2.
"Our stock is being affected by the Time Warner-America
Online announcement," said Peggy Ballard, a spokeswoman for
Atlanta-based Scientific-Atlanta.
She noted that Scientific-Atlanta is already a key supplier
of set-top boxes for Time Warner. "What's good for our
customers is good for us," she said, but added that the company
would not speculate on how significantly the America Online
deal might increase demand.
A spokesman for Schaumburg, Ill.-based Motorola declined to
comment on the stock activity.
Internet service provider America Online said on Monday it
would buy Time Warner, the world's largest media company, for
about $164 billion in stock. The deal ranks as the largest
merger ever.
Analysts said the acquisition may signal increased demand
for Internet access through televisions instead of computers,
and customers would need set-top boxes for that.
Set-top boxes sit atop television sets and are used to
receive digital data from cable operators, which allow for
high-speed digital services such as Internet access.
Motorola last week completed its acquisition of set-top box
maker General Instrument Corp.
Ed Snyder, telecommunications analyst with Hambrecht &
Quist, said it may be too soon to determine how significant the
America Online deal would be to set-top box makers.
"Certainly, it is beneficial for them, but it may be a bit
premature" to speculate on increased demand.
((--Emily Kaiser, Chicago Equities News at 312 408 8787,
chicago.equities.newsroom@reuters.com)) |
