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 : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: E. Davies who wrote (23628)	7/18/2000 7:59:40 PM
From: ALTERN8	Respond to of 29970

Well said Eric. Does anyone know much about CBBC? China Broadband is a Chinese Cable/Internet play: biz.yahoo.com Can anyone find some good info on this one? I've got the float at only 620K according to YHOO, that's explosive!!!?

To: E. Davies who wrote (23628)	7/18/2000 8:13:24 PM
From: FR1	Respond to of 29970

Another argument for the merger? Strength in numbers. However, following the merger of the At Home and Chello Broadband businesses internationally, News Corp will have a more powerful incentive to switch into the Optus camp. afr.com.au Cable giants merger a threat to Foxtel By Ivor Ries The multibillion-dollar merger of two of the world's largest high-speed broadband cable companies has stepped up pressure on Mr Rupert Murdoch's News Corporation to walk away from its Foxtel pay-television alliance with Telstra. At Home Corp, the dominant American high-speed broadband service provider, confirmed yesterday it would merge its international operations with those of UnitedGlobalCom's Chello Broadband group. The merger is expected to create a second national broadband delivery platform in Australia capable of challenging the cable system operated by Telstra Corporation, with significant implications for Telstra's partners in Foxtel, News Corp and Mr Kerry Packer's PBL group. UnitedGlobalCom controls Australia's leading regional pay-television operator, Austar, which launched the satellite and microwave-based Chello broadband service in rural areas in February. At Home operates in Australia in the Optus@Home joint venture with Cable & Wireless Optus and has recently rolled out a high-speed broadband cable service in major cities. The merger will see Mr John Malone's Liberty Media group - an offshoot of US telco giant AT&T - assemble a nationwide delivery platform capable of delivering broadband services and content to more than 90 per cent of Australian homes. Liberty Media owns a controlling stake in UnitedGlobalCom. Mr Malone is a close associate of Mr Murdoch, and Liberty Media, which owns 8 per cent of News Corp's preferred shares, is believed to be close to increasing its stake in News Corp via an asset swap. The emergence of a national broadband distribution system in the hands of a key strategic partner of Mr Murdoch comes as News Corp has become increasingly frustrated about its role in the Foxtel joint venture. News Corp and Telstra have been at odds over Foxtel for almost a year. Critical issues have been News Corp's small equity stake (25 per cent) and inability of News to provide sophisticated broadband services over the Telstra-owned cable. The News-Telstra stoush prompted News to look at acquiring a stake in the rival Optus broadband cable business. Issues of pricing, structure and timing have so far prevented News from switching to the Optus camp. However, following the merger of the At Home and Chello Broadband businesses internationally, News Corp will have a more powerful incentive to switch into the Optus camp. The merged broadband company will trade globally under the Excite Chello broadband name and will have subscribers in 20 countries outside of North America. US media reports say the At Home-Chello alliance will have 13.5 million subscribers worldwide. There is also an added incentive for Mr Murdoch to move his company closer to the AT&T group globally. Following the recent welter of deals, the AT&T empire of cable and broadband companies boasts almost 50 million subscribers. Because the Excite Chello joint venture will offer access to big global markets, there will be a powerful incentive for News Corp to become a major content supplier. And News Corp and Mr Malone have done many content deals in the past: the two collaborated to build the Fox Sports cable programming network in the US. However, News Corp would find difficulty in becoming a preferred supplier of content especially content containing video images to Excite Chello while its Foxtel partnership remains in place. The Foxtel partnership agreement requires News Corp to provide most of its filmed entertainment product exclusively to Foxtel. According to analysts, the At Home-Chello alliance leaves Mr Murdoch with two distinct broadband content options in Australia. He can use the alliance to squeeze more favourable terms out of Telstra on the Foxtel joint venture, or he can dump Foxtel and Telstra and align his global multimedia content business with the Malone-AT&T empire. If Mr Murdoch deserts Foxtel, Telstra would need to find new content suppliers, both for pay-TV and for broadband (internet) content. That would strengthen the negotiating position of Mr Kerry Packer's PBL group, which has 25 per cent of Foxtel