Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Harmonic Lightwaves (HLIT) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Hufnagle who wrote (2987)	10/27/1999 6:19:00 PM
From: kami	Respond to of 4134

I see 50 bid x 150 ask for HLIT after hour trading and CUBE is halted. What this deal will effect on HLIT price tomorrow?

To: Steve Hufnagle who wrote (2987)	10/27/1999 6:19:00 PM
From: Jenne	Respond to of 4134

Harmonic to buy digital video unit C-Cube division to be absorbed in $1.7 bln deal By Deborah Adamson, CBS MarketWatch Last Update: 6:09 PM ET Oct 27, 1999 NewsWatch SUNNYVALE, Calif. (CBS.MW) -- Harmonic Inc. on Wednesday unveiled plans to buy the digital video division of C-Cube Microsystems in a stock-swap deal valued at $1.7 billion. Today on CBS MarketWatch Nets ground tech sector Amazon.com beats Street targets NatWest battles Bank of Scotland IPO Report: New issues soar Qwest exceeds $1 billion in sales More top stories... CBS MarketWatch Columns Updated: 10/27/99 5:16:24 PM ET Harmonic, a maker of products that enable high-speed Internet access, telephony and video-on-demand services, said its purchase of Divicom is expected to close in March 2000. The acquisition should add to Harmonic's earnings in the first year, excluding goodwill charges. Amortization of goodwill will continue to affect profits over five years, the company said. Before the merger closes, Milpitas, Calif.-based C-Cube will spin off or sell its semiconductor business -- essentially separating it to become an independent company. The digital video business will remain and merged into Harmonic. C-Cube bought Divicom in 1996. "Harmonic is strengthening its position for the future," said Seth Spalding, an analyst at CE Unterberg, Towbin. Sunnyvale, Calif.-based Harmonic is buying Divicom to deepen its penetration into the telecommunications, satellite, wireless and other emerging markets, the company said. Divicom's products take analog video signals -- which is what TV and cable sends -- and digitizes it. The resulting digital video gives rise to sharper, better quality pictures and takes up less room, or bandwidth, over networks, said Ed Thompson, vice president of business development at Harmonic. Under the agreement, C-Cube stockholders will exchange one of their shares for 0.5427 of Harmonic stock. Shares of Harmonic (HLIT: news, msgs) closed at 59 7/8 Wednesday, down 5. C-Cube (CUBE: news, msgs) rose by 1 3/16 to 40 3/8.