To: BillyG who wrote (26522 ) 12/11/1997 4:36:00 PM From: John Rieman Respond to of 50808
Strong demand for Digital Cable boxes..........................nypostonline.com CABLE STOCKS GET LIFT FROM TCI By JON ELSEN ------------------------------------------------------------------------ Tele-Communications Inc.'s Leo Hindery Jr. painted a rosy picture of prospects for the cable giant and Wall Streeters liked what they heard. TCI shares jumped 2 to 26 after Hindery's address at the PaineWebber Media Conference, and stocks of other cable operators followed suit. Cablevision rose 3 to 88 and Comcast rose 1 516 to 29. Hindery divulged that TCI will add more than 90,000 subscribers in the fourth quarter, some of those new and some of them returning. The number was higher than expected, and a big increase over the third quarter's 65,000-subscriber increase. Some were disappointed that Hindery had still not notched a deal for a major technology company to invest in TCI. Hindery said talks for a technology partnership are on track. He would not say if he was talking with Microsoft's Bill Gates, who's believed to be considering a TCI investment. Gates also reportedly has been considering investing in U S West and Time Warner, though a Time Warner deal is unlikely. Some still believe a Microsoft investment in TCI is next, in large part to help TCI cover the cost of rolling out digital set-top boxes. Hindery also said he was preparing to announce three deals with other cable operators, ending his flurry of such transactions over the last half year. Once the deals are done, TCI will have shrunk to 10 million subscribers. The deals, to be announced late last night in California, were believed to allow TCI to beef up its control of Chicago, and involve Continental and Adelphia. TCI's alliance and system swaps have allowed the cable giant to focus on its core systems, while off-loading substantial debt. "This project is over," Hindery said yesterday. Hindery also said: TCI will be at the low-end of the range of rate increases by cable operators, and will probably raise rates by a percentage in the "mid-single digits." TCI will probably take a partner when it rolls out Internet telephone service in a few years. He would not say if he is talking with AT&T, as is rumored now that AT&T has decided to sell its 2.5 percent stake in satellite-operator DirecTV. He plans to do a deal with a major broadcaster on high-definition television. He expects to announce soon how TCI will increase its stake in HSN Inc. from 10 percent to 25 percent, once HSN completes its Universal deal. He said he won't contribute cable networks Discovery, Starz! or Fox/Liberty Sports - a partnership with News Corporation, owner of The Post - which owns 40 percent of the New York Knicks, New York Rangers, Madison Square Garden and the MSG Network. TCI is getting strong demand for its new digital set-top boxes. CableLabs, a consortium of cable operators, is deciding "as we speak" what technology companies will have a role in the making of new set-top boxes for interactive cable television. He would not predict when a decision will be made.