Some broadband news from Bill...
REDMOND, Wash., and PHILADELPHIA, June 9 /PRNewswire/ -- Microsoft Corp.
(Nasdaq: MSFT) and Comcast Corp. today announced that Microsoft will make an
investment of $1 billion in Comcast, the nation's fourth-largest cable
television operator and a diversified telecommunications company. The $1
billion cash investment will enhance Comcast's deployment of high-speed data
and video services via its cable delivery network.
"Our vision for connecting the world of PCs and TVs has long included
advanced broadband capabilities to deliver video, data and interactivity to
the home," said Bill Gates, chairman and CEO of Microsoft. "Comcast's
integrated approach to cable distribution, programming and telecommunications
complements that vision of linking PCs and TVs. Today's announcement will
enhance the integration of broadband pipes and content to expand the services
offered to consumers."
Brian L. Roberts, president of Comcast, stated, "I am pleased to have
Microsoft's participation as we shape and advance the integration of the PC
and the TV. Microsoft's investment is a strong endorsement of Comcast's
vision to use its cable networks as a broadband vehicle to homes, schools and
businesses. Comcast's customers will be the beneficiaries of the innovations
that America's most advanced computer and cable companies can offer. In
addition to a significant cash infusion, this investment gives us access to
Microsoft's expertise, which will help us facilitate the deployment of high-
bandwidth applications and lead to more sophisticated services."
"We have a tradition of investing in businesses that are consistent with
our technology vision," commented Greg Maffei, vice president of corporate
development at Microsoft. "Like Comcast, Microsoft has always believed that
increasing network bandwidth is a key to the eventual convergence of the
Internet, the PC and the TV. And we believe that Comcast is a very attractive
investment as that convergence occurs."
Gates will work closely with Roberts regarding the strategic and
technological direction of Comcast. In addition, Maffei will serve as an
observer on the board of directors of Comcast.
Microsoft will purchase 24,642,681 shares of Class A Special Common Stock
(CMCSK) for $500 million at $20.29 per share and $500 million of a new issue
of Comcast Series B Convertible Preferred Stock. The Comcast Series B
Convertible Preferred Stock will have a 5.25 percent pay-in-kind dividend and
will be initially convertible into 21,243,691 shares, which equals an initial
conversion price of $23.54 per share. The number of shares into which the
issue can be converted will not increase due to the pay-in-kind dividend as
the conversion price increases proportionately to the amount of accrued
dividends. The issue will have a final maturity of 20 years, but may be
redeemed at Microsoft's option or called by Comcast after seven years. The
investment is expected to close this month.
Founded in 1975, Microsoft (Nasdaq: MSFT) is the worldwide leader in
software for personal computers. The company offers a wide range of products
and services for business and personal use, each designed with the mission of
making it easier and more enjoyable for people to take advantage of the full
power of personal computing every day.
Comcast Corp. is principally engaged in the development, management and
operation of wired telecommunications, including cable television and
telephone services; wireless telecommunications, including cellular, personal
communications services and direct-to-home satellite television; and content
through principal ownership of QVC, the world's premier electronic retailer,
through C3 (Comcast Content & Communications), through majority ownership of
Comcast-Spectator and controlling interest in E! Entertainment and through
other programming investments. The Company's consolidated and affiliated
operations serve over 10 million customers worldwide.
Comcast's Class A and Class A Special Common Stock are traded on the
Nasdaq Stock Market under the symbols CMCSA and CMCSK, respectively.
Microsoft is either a registered trademark or a trademark of Microsoft
Corp. in the United States and/or other countries.
SOURCE Microsoft Corp. |
