Sprint To Buy Cable Company For $168M
10.38 a.m. ET (1438 GMT) April 27, 1999
KANSAS CITY, Mo. — Long-distance phone provider Sprint Corp. said Tuesday it is buying wireless cable television company American Telecasting Inc. for $6.50 per share or $168 million.
Sprint said it will use the broadcast licenses controlled by American Telecasting to provide an estimated 10 million households with access to its Sprint Integrated On-Demand Network.
The licenses can be used for high-speed Internet and data services in several major markets across the United States, including Seattle, Las Vegas, Denver, Portland and some parts of Ohio.
"Together with our recently announced merger with People's Choice TV, this transaction gives us a wireless alternative to deliver advanced communications services to our customers,'' said Sprint chief executive William Esrey in a statement.
Using American Telecasting's broadcast spectrum, Sprint will be able to provide services to 55 markets, mostly in the north central and western United States
The wireless service is expected to reach as much as 80 percent of the households in a metro area by using a small number of transmitting towers. That high capacity will allow Sprint to deliver its ION services without leasing telephone lines from local phone companies.
ION is already available in large business markets. Services for consumers and small businesses will roll out in the fourth quarter and continue through next year.
The deal must be approved by stockholders, the Federal Communications Commission and the Department of Justice. Sprint said about 26 percent of American Telecasting's stockholders have already agreed to vote in favor of the deal and against any competing offer. In addition to the stock purchase, Sprint is assuming about $281 million of American Telecasting's debt.
H KANSAS CITY, Mo. Long-distance phone provider Sprint Corp. said Tuesday it is buying wireless cable television company American Telecasting Inc. for $6.50 per share or $168 million.
Sprint said it will use the broadcast licenses controlled by American Telecasting to provide an estimated 10 million households with access to its Sprint Integrated On-Demand Network.
The licenses can be used for high-speed Internet and data services in several major markets across the United States, including Seattle, Las Vegas, Denver, Portland and some parts of Ohio.
"Together with our recently announced merger with People's Choice TV, this transaction gives us a wireless alternative to deliver advanced communications services to our customers,'' said Sprint chief executive William Esrey in a statement.
Using American Telecasting's broadcast spectrum, Sprint will be able to provide services to 55 markets, mostly in the north central and western United States
The wireless service is expected to reach as much as 80 percent of the households in a metro area by using a small number of transmitting towers. That high capacity will allow Sprint to deliver its ION services without leasing telephone lines from local phone companies.
ION is already available in large business markets. Services for consumers and small businesses will roll out in the fourth quarter and continue through next year.
The deal must be approved by stockholders, the Federal Communications Commission and the Department of Justice. Sprint said about 26 percent of American Telecasting's stockholders have already agreed to vote in favor of the deal and against any competing offer. In addition to the stock purchase, Sprint is
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