To: Goldbug Guru who wrote (168 ) 6/13/1999 9:32:00 AM From: Yiota Read Replies (1) | Respond to
This article was posted on Briefing.com not to long ago, interesting!But only two of the offerings fall into the high-profile category: Wit Capital Group and High Speed Access Corp. (For Briefing.com comments on the Wit Capital offering, see May 02 Story Stocks)...Denver, CO-based High Speed Access Corp. is a provider of cable-based Internet access services. With total 1998 revenue of only $450,000, the company doesn't look like much from a distance. But closer inspection reveals one of the most intriguing deals to hit the market this year. High Speed Access, even more so than most Internet offerings, is a story of potential. The key to this deal is billionaire Paul Allen. Not only does the Microsoft co-founder's hold a 54.2% stake in HSAC (through his Vulcan Ventures fund), but Mr. Allen and has team have signed on several tech heavyweights as allies. Concurrently, with the initial public offering,Microsoft (MSFT) and Cisco Systems (CSCO) will, respectively, purchase $10 mln and $7.5 mln of HSAC common stock. But the most important of the company's supporters (next to Mr. Allen, of course) is Charter Communications, one of the nation's ten largest cable system operators. Charter, which is also owned by Vulcan Ventures, has agreed to provide HSAC with exclusive access to at least 750,000 homes passed, and has an equity incentive to provide up to an additional 5 million homes passed. Charter has warrants to purchase up to 7.75 million shares of HSAC common stock at an exercise price of $3.23 per share.
