[Microsoft May Invest Up To $1 Billion In U S West Cable Operations]
we see now why U.S. West breaks up the company it worked so hard to assemble: MSFT didn't want to invest in the telco part. MediaOne's holding are mainly in New England, i think... the old Continental Cablevision? Added pressure in BA/NYNEX territory.
mark
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NEW YORK -(Dow Jones)- Microsoft Corp. reportedly is nearing an agreement to invest as much as $1 billion in the cable-television operations of U S West.
The move would advance Microsoft's efforts to turn the nation's cable television infrastructure into the primary high-speed access to Internet, Wednesday's New York Times reported. Microsoft is hoping to control the software that would run the set-top device used for getting online.
The investment would get the software giant as much as 6.3% of the cable operations of U S West, a regional telephone carrier, the Times reported. Microsoft made a similar investment in June, paying $1 billion for an 11.5% stake in Comcast Corp., another major cable provider.
The Times, quoting sources familiar with the talks, said the two sides hoped to finalize a deal by next month. Just a few weeks ago, Microsoft had been rumored to be close to a similar deal with Tele-Communications Inc.
U S West announced late last month that it was spinning off its cable business into a new company, MediaOne, in order to concentrate on local and long distance telephone service. MediaOne, with more than five million customers in 19 states, would become the nation's third-largest cable company.
MediaOne would also own U S West's 25% interest in the Time Warner Entertainment partnership that owns cable systems, the Warner Bros. film studio and the HBO pay-television service. It would also own U S West's international interests and interactive services. |
