WinStar Communications Sells 10% Stake in Its New Media Subsidiary to Institutional Investors
BusinessWire, Friday, April 24, 1998 at 06:48
NEW YORK--(BUSINESS WIRE)--April 24, 1998--
$10 Million Proceeds Will Be Used To Support WinStar New Media's
Expansion
WINSTAR COMMUNICATIONS, INC. (NASDAQ-WCII) today announced that it
has sold a 10% equity stake in WinStar New Media, its
convergence-driven media and information services subsidiary, to a
group of institutional investors led by Tudor Investment Corporation
for $10 million. WinStar New Media will use the capital to finance the
continuing expansion of its businesses through internal growth and
acquisitions.
In addition to Tudor, a fund management and proprietary trading
organization, other institutional investors in the group include
Wheatley Partners, L.P.
William J. Rouhana, Jr., Chairman and Chief Executive Officer of
WinStar Communications, Inc., stated that "The $10 million placement
furthers our strategy to independently finance WinStar New Media,
reflects the substantial value that has been created by WinStar New
Media over the short period of its existence, and is the latest
demonstration of New Media's ability to attract capital, as it comes
on the heels of its recently-established $15 million revolving credit
facility with ING Capital."
"We're pleased to draw upon the expertise and extensive network of
new investors who are known for their success both in the traditional
and new media arenas. They bring a wealth of experience and
relationships that will be of enormous help to us in identifying and
evaluating appropriate businesses to add to our growing enterprise,"
commented Stuart B. Rekant, President, WinStar New Media.
Robert Forlenza, Managing Director of the general partner of Tudor
Private Equity Fund L.P., added "Tudor is always on the look-out for
investment opportunities in new media businesses that have the right
mix of management strength, core assets, and a forward-thinking
expansion strategy. WinStar New Media is competitively positioned for
growth in the online markets, as well as in the more traditional
media. New Media also is able to leverage WinStar's telecommunications
sales force and customer base to support its extension into emerging
interactive businesses."
WinStar New Media produces and markets business information and
entertainment content targeting the business, educational and consumer
markets. New Media's added-value content differentiates WinStar from
other telecommunications companies and strengthens customer loyalty by
offering services that take advantage of the broadband connectivity
the company supplies.
In particular, WinStar New Media is expanding its Internet
business information operations to provide a wide range of products
and services geared to the needs of small and medium size businesses.
Through its WinStar Telebase subsidiary, WinStar New Media has over 14
years of experience providing premium, customized business content
from more than 1000 brand name sources of information to online
networks such as AOL (Dun & Bradstreet@AOL), CompuServe (IQuest), and
Prodigy (Prodigy Reference Center). WinStar New Media's @SportsFan
Radio on AOL (Keyword:SportsFan) continues to be a popular featured
sports area.
WinStar Communications, Inc. is a national local communications
company, serving business customers, long distance carriers,
fiber-based competitive access providers, mobile communications
companies, local telephone companies and other customers with
broadband needs. The company provides its Wireless Fiber(SM) services
using its licenses in the 38 GHz spectrum. The company also provides
long distance, Internet and information services.
WinStar is a registered trademark, and Wireless Fiber(SM) is a
service mark of WinStar Communications, Inc.
CONTACT: Financial Community: Press:
Frank Jepson Beth-Ellen Keyes
SVP, Capital Market Relations (212) 584-4098
(212) 584-4021
KEYWORD: NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS
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Companies or Securities discussed in this article:
Symbol Name
NASDAQ:WCII Winstar Communications |
