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

To: Ian deSouza who wrote (27545)	1/5/1998 4:20:00 PM
From: BillyG	Read Replies (1) \| Respond to of 50808

Sony to form TV pact with NextLevel, invest $188 million Reuters Story - January 05, 1998 15:41 (Adds analyst comment, details, byline) By Susan Nadeau CHICAGO, Jan 5 (Reuters) - Consumer electronics giant Sony Corp. and NextLevel Systems Inc. said Monday they will join forces to create advanced digital TV set-top boxes with far more computing power and capabilities than current models. As part of the deal, which requires the signing of definitive agreements and approval by NextLevel shareholders, Sony will pay around $188 million for about a 5 percent stake in the cable TV set-top box maker. The move would give the Japanese electronics giant a foothold in rapidly changing television technology and in the cable TV market in the United States. For NextLevel, which is changing its name back to General Instrument Corp., the pact would mean access to Sony's established presence in retail stores. Set-top boxes are currently provided to cable watchers by cable TV operators. "In the U.S., cable television will play an important role in bringing digital television to the consumer," Gary Myer, president of Sony unit Digital Network Solutions of America, said in a statement. Under the deal, Sony will buy 7.5 million new shares of NextLevel common stock, or about 5 percent of the outstanding shares, at $25 each. NextLevel stock jumped $1.56 to $19.75 in consolidated afternoon trading on the New York Stock Exchange. The price Sony agreed to pay represents a 37 percent premium over NextLevel's closing price of $18.19 Friday, and is well above the stock's 52-week high of $21.44. "It's a significant strategic investment if NextLevel and the cable operators are able to get the equipment and systems geared up to support retail distribution of their products," said Todd Koffman, an analyst with investment bankers Lehman Brothers. "That's not the case right now, and it's probably a couple of years away." The companies said they were exploring a broader business relationship and discussing future generations of digital cable TV devices and high-definition TV products. Sony technology, such as video game equipment and digital video disk (DVD) players, may eventually be integrated into the new set-top boxes. In addition, the boxes will include a computer modem, allowing for high-speed connection to the Internet. "We believe that Sony's expertise in digital consumer electronics and its strong retail brand complement General Instrument's strengths, and will certainly be significant asssets for the development of the next-generation digital set-top (box) based on GI's platform," NextLevel Chairman Edward Breen said in a statement. NextLevel, which is one of three companies that emerged from a strategic reorganization of General Instrument, said two weeks ago that most of the nation's leading cable system operators plan to buy 15 million set-top boxes, valued at about $4.5 billion, over the next three to five years. Sony's 5 percent stake in NextLevel would be in addition to warrants to be issued to cable operators totaling 16 percent of the company, in connection with that agreement. Along with its audio, TV and electronics businesses, Sony owns music, film and video game assets, making it one of the world's largest entertainment companies. It had fiscal 1996 sales of $45 billion. Sony stock closed up 200 yen in Tokyo at 11,800. (--Chicago Equities Desk at 312 408 8787, (chicago.equities.newsroomreuters.com)

To: Ian deSouza who wrote (27545)	1/5/1998 7:58:00 PM
From: John Rieman	Respond to of 50808

Shanghai..................................................... cei.go.cn City's per capita GDP to reach US$5,000 by 2000 <Picture: [IMG]> SHANGHAI (Xinhua) -- The per-capita gross domestic product (GDP) of residents in Shanghai is expected to top US$5,000 by the end of the century because of the city's rapid economic development. "It is a very practical target for Shanghai to increase its per capita GDP from the current US$3,000 to US$5,000 in three years," said Xu Kuangdi, Shanghai's mayor. The city's average annual growth rate of GDP was 14.2 per cent during the 1992-96 period, and is estimated to have reached 13 per cent in 1997. Expressing his confidence in Shanghai's economy, Xu said, "The macro-economic situation of Shanghai now is the best in history, despite increasing pressure from market competition and economic risks." The city will adopt measures to speed up adjustments to its industrial structure, reform of its State-owned enterprises and opening-up to bring Shanghai's economy to a new level, Xu said. Shanghai's increasing social demands will support at least an 11 per cent annual GDP growth rate, according to Han Zheng, director of the Shanghai Municipal Planning Committee. Partially as a result of expanding social demands, the service industry should also continue its strong growth. The city's pillar industries, such as automotive, electronics and telecommunications, should develop rapidly, as well as local non-State economies. Economists estimate that Shanghai will invest 600 to 700 billion yuan (US$72.3 billion to US$84.3 billion) in fixed assets in the next three years, and its export volume should increase 10 to 12 per cent annually through the end of the century. Date: 01/05/98