The way I figure it 45%for 300million gives you a value of around 660mil.
In March of 1995, CAI entered into a strategic
relationship with affiliates of Bell Atlantic and NYNEX
(the RBOCs or BANX partners). The BANX partners
purchased $100 million in convertible preferred stock
and debt of CAI and warrants for CAI stock, which
when combined with the conversion rights would permit
BANX to acquire 45 percent of the equity of CAI for a
total of $300 million. Under the arrangements with the
RBOCs, CAI is responsible for constructing and maintaining digital transport systems
in the 12 markets located within the Bell Atlantic and NYNEX service regions, the
RBOCs have the option, on a market-by-market basis within their respective regions,
to operate wireless cable television systems in the market. In the optioned markets,
CAI would become a wholesale-type provider of digital wireless cable transport to
Bell Atlantic and NYNEX, which would provide retail distribution to customers,
including marketing, programming, installation, service and billing. The RBOCs would
be responsible for all capital expenditures related to customer installation and would
receive the monthly revenue from the customers in these markets. CAI would receive
monthly payments from the RBOCs based on the number of customers and
line-of-sight (LOS) households.
The subscription television service to be sold by the RBOC partners is expected to
consist of 120-150 channels, including local channels, up to 40 channels of
pay-per-view programming, digital picture and CD-quality sound, sports packages,
and the cost to the consumer is expected to be about the same as traditional
hard-wire cable. The RBOCs are expected to market their service under the Tele-TV
brand name.
Please also see Heartland Wireless Communications, Inc. and National Digital
Network.
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