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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (48203)	1/10/2000 3:58:00 PM
From: J Fieb	Read Replies (1) \| Respond to of 50808

Motorola, Scientific-Atlanta stock up after AOL deal CHICAGO, Jan 10 (Reuters) - Shares in Motorola Inc. (NYSE:MOT - news) and Scientific-Atlanta Inc. (NYSE:SFA - news), both of which make television set-top boxes, shot higher on Monday amid expectations that America Online Inc.'s deal to buy Time Warner Inc. would speed demand for Internet access via television, analysts said. ''I think the implication is that they'll want to merge the Internet experience with television,'' said Mark Roberts, a technology analyst with First Union Securities. Shares of Motorola were up 14-6/16 at 143-5/16 in midday New York Stock Exchange trading, while Scientific-Atlanta's stock was up 8-1/8 at 59. A spokesman for Schaumburg, Ill.-based Motorola declined to comment on the stock activity. Scientific-Atlanta could not immediately be reached for comment. Internet service provider America Online (NYSE:AOL - news) said on Monday it would buy Time Warner (NYSE:TWX - news), the world's largest media company, for about $164 billion in stock. The deal ranks as the largest merger deal ever. Analysts said the acquisition may signal increased demand for Internet access through televisions instead of computers, and customers would need set-top boxes for that. Set-top boxes sit atop television sets and are used to receive digital data from cable operators, which allow for high-speed digital services such as Internet access. Motorola last week completed its acquisition of set-top box maker General Instrument Corp. Ed Snyder, telecommunications analyst with Hambrecht & Quist, said it may be too soon to determine how significant the America Online deal would be to set-top box makers. ''Certainly, it is beneficial for them, but it may be a bit premature'' to speculate on increased demand.