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Technology Stocks : IATV-ACTV Digital Convergence Software-HyperTV -- Ignore unavailable to you. Want to Upgrade?

To: art slott who wrote (11111)	7/20/2000 4:30:24 PM
From: Craig Jacobs	Respond to of 13157

Art, it was posted on Ragebull, wcreekbob98 did you see this? July 23, 2000 9:00pm Liberty Media & UnitedGlobalCom's Giant Deal By Rebecca Cantwell Inter@ctive Week With a nip here, a tuck there and a swap on the side, two cable titans plan to mold their myriad stakes in television and high-speed Internet access companies into a powerhouse spanning Europe, Latin America and Asia. John Malone's Liberty Media Group (www.libertymedia.com) recently agreed to merge most of its international assets with Gene Schneider's UnitedGlobalCom (www.unitedglobal. com), already the biggest provider of broadband video, voice and data services outside the U.S., in a deal valued at $5.5 billion. "The whole game here is to build a big platform to serve a rapidly globalizing economy, or just the scale of being able to buy in large quantities and be able to lead the pack in technologies," Malone says. The company hopes to use Chello, an affiliate of UnitedGlobalCom, as a portal for both terrestrial and satellite Internet access around the world, tapping into Liberty's many alliances with access providers. Liberty's Japanese affiliate, Jupiter Telecommunications, is likely to become part of the alliance; as part of the deal, UnitedGlobalCom has the right of first offer to buy Liberty's stake in Jupiter. Liberty owns half of Jupiter, but plans to integrate it with Microsoft affiliate Titus Communications. Plans were revealed June 27 for a new Jupiter, of which Microsoft will hold 24 percent, and Liberty and Sumitomo will each hold 35 percent. Controlling interest The alliance between Malone and Schneider makes Liberty the controlling shareholder of UnitedGlobalCom, with a 38 percent economic interest and a 72 percent voting interest in the company. Liberty will appoint four of 12 board members and has agreed to leave management alone for 10 years. Under the terms of the deal, in exchange for $200 million in cash and 75.3 million shares of UnitedGlobalCom stock, Liberty is turning over: a 25 percent interest in Telewest Communications, the second-largest cable company in Britain and its broadband interests in Latin America, including a 28 percent stake in Cablevision of Argentina, the largest cable television operator in Latin America, with 1.5 million subscribers. UnitedGlobalCom will contribute the Telewest stake to its subsidiary, United Pan-Europe Communications, in return for enough stock to boost its ownership in UPC from 51 percent to 61 percent. The European unit has been seeking a British presence in recent negotiations. With the Liberty assets, United GlobalCom will become Latin America's largest broadband company, with interests in 6 million homes passed, Schneider says. Create your own ZDII Home Page. Symbol: CVC (Amex) Last Trade 10:44AM 69 9/16 Change - 1/8 % Change -0.18 % Market Cap. 12,049(mil) -22(mil) Full Quote Chart News Financials Estimates Broker Research Competitors Stock Talk Add to Portfolio Symbol: LMG.A (Nyse) Last Trade 10:45AM 24 11/16 Change - 1/16 % Change -0.25 % Market Cap. 10,482(mil) -27(mil) Full Quote Chart News Financials Estimates Broker Research Competitors Stock Talk Add to Portfolio Quotes delayed by 15 minutes or more for Nasdaq, 20 minutes otherwise. Source: S&P Comstock.