Digeo...Digeo... and more Digeo!
Geesh, I thought I was completely done researching this Digeo "obsession" for a few years...at the very least. <g>. And Heck, today was the first time I've ever been "flamed," by anyone since I joined SI. I apologize for not responding sooner, and I'll try to give it one more shot at trying to clear this all up as best I can.
OT: I recently had some fairly major surgery (on April 4th), which may take several months or more to fully recover from, so I really can't sit at a computer for more than a few minutes at a time at the moment.
BTW, I did ask the surgeons to do a complete brain transplant on me, to be taken from someone who was an absolutely brilliant genius at both "shorting" stocks, as well as a master at placing "stop-losses" on long stock positions. But the doctors couldn't find any suitable donors, as apparently all potential candidates are now happily living lives of quiet desperation...tanning themselves on remote tropical islands, sipping mai-tai's and margaritas under palm trees...although most likely bored out of their friggin minds. <g>. So the surgeons just removed everything but my head, and it's really h*ll typing with this #2 pencil stuck in my mouth, while propped up on top of a waste bucket.
Also OT: And as a personal note, I will add that I've always treasured my personal integrity above all else, and have always attempted to strive in both my professional and personal life to place the highest value on the truth, the whole truth, and nothing but the truth...so help me God! Besides, I was a high ranking Boy Scout, and we can never ever tell a lie or even a slight half-truth, or we will be immediately incinerated by a lightening bolt...or something like that :)
Regarding my four posts concerning DIGEO posted on this thread on March 5, 2001 (#reply-15447806, #reply-15447922, #reply-15448006, #reply-15448050), I had spent several weeks researching and compiling all that historic and current information together into one place, as several posters and investors (including me) wanted to find out what role INSP was playing in this interactive TV thing. I would also like to say that I've always taken extremely careful notes during all conversations and meetings (probably because of my profession, where a single wrong word on a drawing, or in a specification, could potentially be worth millions in liability). Heck, I even take notes when my mother calls. :)
My conversations with the Investor Relations representatives of INSP, CHTR, and Digeo in the above referenced posts occurred in the last half of February, 2001 (just a few weeks after the little management shake-up, and employee layoffs). I still have my notes from those conversations, and I still stand by EVERY WORD in my posts of March 5th, as representing an accurate record of what I was told during those conversations.
Now...today I talked again several times to the IR. representatives of both INSP and CHTR. I've had many wonderful conversations with both of them, and I've always found them both to be extremely courteous and helpful people. My general impression, is that they both work in very different corporate cultures, which place very different limitations on them by their managers...in terms of both how much detail they actually know, as well as how much they are allowed to share with shareholders. Sort of like, White House press secretaries. Some know everything, and some surely don't know what the h*ll the boss is really doing.
MY CONVERSATIONS TODAY REGARDING "DIGEO":
Charter Communications (CHTR)
Mary Jo Moehle, Investor Relations
Phone: (314) 965-0555
Mary and I have talked before (see my 3/4/01 reports). In fact, she will again be at the CHTR shareholder's meeting in Bellevue, WA on June 6th. We had about four conversations today, and she is absolutely delightful to talk to, and incredibly helpful. I would have preferred to have gotten this information directly from INSP as it's not a long distance call for me, and St. Louis is several times zones away...but oh well.
Regarding Digeo, she said that the Interactive TV "beta" testing currently being conducted using selected CHTR employees (ironically she isn't one of them, as she lives outside of the CHTR cable area) in St. Louis is going extremely well. She told me that since our last conversation, CHTR has selected Liberate Technologies (over Microsoft) to provide the "middleware" for the initial rollout of CHTR's interactive TV service, using Digeo as the "portal." She again read the passages from CHTR's most recent SEC S-4 filing (2/2/01) regarding the Digeo joint venture, again saying the Digeo Broadband partners are: CHTR, Vulcan Ventures...and INSP. As I couldn't find the S-4 on the Internet, she totally surprised me by offering, "Do you want me to just fax the pages in the S-4 regarding Digeo to you right now." I couldn't believe it! About two minutes later my fax machine started humming, and pumped out the pages (see below), from the IR. representative of the 4th largest cable company in the U.S. I was truly impressed she would do that for me, within minutes.
She also said that very soon, CHTR would begin including "Friendlies" in the "beta" testing Digeo portal Interactive TV service. I asked her what "friendlies" were, and she said they would be selected from current digital cable customers in the St. Louis area and get to test the Digeo service at no charge...so perhaps at least one previous poster on this thread might want to volunteer to be a guinea pig.
I asked her again why it has taken so long to roll out the Interactive TV service. She again reiterated the delays had been caused primarily because of the "middleware" not being ready, as well as other misc. technical stuff, of which she really didn't fully understand, as said she's not a "techie." When I asked her when the final first "public" version" would finally be rolled out in the St. Louis area, she said again, "It should be later this year...most likely in the fall."
She also said that Digeo had developed both the "portal" (Internet navigation) as well as the "content" for CHTR's interactive TV Internet connection. I asked her what that meant, and she said it would include things like financial sites (including "personal" stock portfolios), local weather, sports stats, news service, and e-mail service...all on the TV. She said her understanding is that there will be a single button a person can push on their TV remote, which will switch you from TV broadcast you are watching, to the Digeo Internet portal site. She thinks that you will be able to have the option to either have a screen overlay, or a partial screen, so you can keep switching back and forth between a TV program, and the Internet. E-mail will most likely be typed by a "remote" wireless keyboard, which she believes will be provided with the service.
I asked her about potential revenue streams for Digeo when the service is finally up and running. She said income will be generated primarily by three sources: monthly subscriptions for the service, advertising on the sites (I was afraid of that, more d*mn banner ads no doubt <g>), and payments for commerce generated while using portal sites.
She indicated that the Digeo portal service would most likely be available in two versions. The first version would be what's called a "Walled Garden." This would be a minimal service, that would allow the user access to limited and specific Internet sites. The second version (more expensive), would allow the user full access to any and all Internet web sites...even this one. <g>
I asked her about when CHTR will be providing "telephony" services through their same digital TV service. she said she didn't think it would be available until 2002, or perhaps 2003. When it's eventually available, it will include both telephone and live teleconferencing service right through the same TV. She didn't think Digeo would be directly involved in the "telephony" part of the service.
Mary also said that CHTR will be expanding in the St. Louis area soon, by taking over a portion of the previous AT&T customers, through a deal they worked out.
++++++++++++++++++++++++++++
InfoSpace (INSP)
Nicole Knowles, Investor Relations Director
Phone: (425) 201-6100
Email: nicole.knowles@infospace.com
Nicole and I have had several very pleasant conversations. In fact, she is the person who first let me know who the new INSP Board of Directors (BOD) were, following the departures of Arun Sarin, and Russell Horowitz...which had been widely speculated about (even including some saying Paul Allen was now on the INSP BOD), until I posted the new BOD's names on this thread, thanks to Nicole.
It was obvious from my conversation with her today, that she has been reading both of the INSP threads. As soon as I brought up Digeo and mentioned my recent conversation today (just a few minutes before) with the IR. representative of CHTR, she stated that when she had told me during our last conversation in late February "That is inside information," (a few days before my "Digeo" posts of March 5th) that what she had meant was that it is company policy not to discuss InfoSpace's partnerships until after the information is released in a company statement, or press release. She asked me if I was the one who posted that (brief epistle <g>) Digeo report on the thread. Being a Boy Scout, I had to say yes, so heck, now she knows who I am, so I better watch what I say from now on. <g>
Anyway, she did confirm today that INSP is in fact a partner in the Digeo Broadband joint venture, but could not fill me in on any more details of the agreement at his time. She did again mention that INSP is working with many other previously announced partnerships, including Interactive TV ventures which have been previously announced, such as Microsoft TV, Liberate TV etc...
She also mentioned something to the effect that perhaps the original "Broadband Partners" (eventually becoming "Digeo") agreement that GNET and Vulcan Ventures entered into, may have been changed somewhat along the way, and perhaps it was more restrictive than the current relationship that INSP has in the Digeo Broadband venture, in terms of developing broadband services for other companies in other partnerships. But she didn't sound too sure about the details. It was my understanding from asking Russell Horowitz at a GNET shareholder's meeting, that GNET (and Digeo) were not restricted from developing cable interactive-TV "portal" services, but I can't find those notes at the moment.
I don't know if Nicole really likes me or not <g>, but I've always found her very responsive, courteous, straight forward, and helpful. She seems like a very nice lady, doing a very tough job.
***********************************************
The following information was faxed to me (in three pages) this very afternoon from Mary Jo Moehle, Investor Relations (IR.) of Charter Communications. It is from CHTR's most recent SEC S-4 filing on 2/2/2001. Please excuse any typos (I couldn't find it on the Internet), and I had to retype it all myself...and I'm a really lousy and slow typist:
CHARTER COMMUNICATIONS (CHTR)
S-4 SEC filing on 2/2/2001
Internet Portal Services (from pgs. 92-93)
On October 1, 1999 Charter Communications Holding Company, Vulcan Ventures, and an entity controlled by Mr. Allen, and InfoSpace, Inc. (successor by merger to Go2Net, Inc.) entered into a joint venture to form Digeo Broadband, Inc. Digeo Broadband will provide access to the Internet through a "portal" to our customers on the digital service. A portal is an Internet web site that serves as a user's initial point of entry tot the World Wide Web. By offering selected content, services and links to other web sites, a portal guides and directs users through the World Wide Web. In addition, the portal generates revenues from advertising on its own web pages and by sharing revenues by linked featured web sites.
Revenue splits and other economic terms in this arrangement will be at least as favorable to us as terms between Digeo Broadband and any other parties. Charter Communications Holding Company has agreed to use Digeo Broadband's portal services exclusively for an initial six-year period that will begin when the portal services are launched, except that Charter Communications Holding Company's existing agreements with other Internet high-speed portal services and High Speed Access may run for their current term to the extent that such agreements do not allow for the carriage of content provided by Charter Communications Holding Company or Vulcan Ventures. The joint venture is for an initial 25-year term, subject to successive five-year renewals by mutual consent. Vulcan Ventures will own 55.2%, Charter Communications Holding Company will own 24.9%, and InfoSpace will own 19.9% of Digeo Broadband's equity interests and Vulcan Ventures will have voting control over the Digeo Broadband entity. Digeo Broadband's board of directors will consist of three directors designated by Vulcan Ventures and one by each of Charter Communications Holding Company and InfoSpace.
Each of Digeo Broadband's investors will be obligated to provide their pro rata share of funding for Digeo Broadband's operations and capital expenditures, except that Vulcan Ventures will fund our portion of Digeo Broadband's expenses for the first four years and will fund InfoSpace's portion of Digeo Broadband's expenses to the extent InfoSpace's portion exceeds budget for the first four years.
We believe that our participation in the Digeo Broadband joint venture will facilitate the delivery of a broad array of Internet products and services to our customers over the television through the use of an advanced digital set-top of through the personal computer.
Our advanced technology team continues to work with Digeo Broadband to develop our portal service. We anticipate launching the service in St. Louis in the first half of 2001. We do not anticipate that our participation in the Digeo Broadband joint venture will have a material adverse impact on our financial condition or results of operations for the foreseeable future.
Digeo Broadband, Inc. (from pg. 144):
Charter Communications Holding Company has entered into a joint venture known as Digeo Broadband, Inc. with Vulcan Ventures, Inc. and InfoSpace, Inc. to provide broadband portal services. See "Business-Products and Services." Mr. Allen owns in the aggregate, directly and through Vulcan Ventures, Inc. approximately 9% of the outstanding equity of InfoSpace, Inc. Mr. Savoy, a director of Charter Communications, Inc. and Charter Communications Holding Company, is also a director of InfoSpace, Inc.
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Gotta go. I'm about to roll off this waste bucket...
and my lips are getting really sore. Bye...
Roger
PS. OT: And Puck, I'm very sorry you said the things you did about me today on the other thread...but I do appreciate your apology. Just know this...I believe the vast majority of the people who post on both of the INSP threads want the value of their INSP shares to go up. But I, for one, don't want to hear just the "good news"...I want to know the complete story about the company, and the complete truth about any company I choose to invest in, even if it might sound like "bashing" to some. |
