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Technology Stocks : Lucent Technologies (LU) -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (1385)	2/18/1998 3:38:00 PM
From: Capitalist	Respond to of 21876

Lucent Technologies Forms Subsidiary, Lucent Venture Partners; Venture Capital Fund to Invest in Emerging Technologies MURRAY HILL, N.J., Feb. 18 /PRNewswire/ -- Lucent Technologies (NYSE: LU - news) today announced the formation of a venture capital fund, Lucent Venture Partners Inc., designed to identify and invest in emerging technologies. The new subsidiary, which will have $100 million committed to its initial investments, will focus on technology in high growth areas such as wireless, data networking, semiconductors, communications software and professional services. ''This venture will give us early insight into the technologies, products and companies developing outside Lucent's walls that can help support our growth,'' said Rich McGinn, Lucent Technologies chief executive officer, who today adds chairman to his title, succeeding Henry Schacht. ''We will be looking at direct investments and at partnerships with venture capital firms.'' McGinn has asked Schacht, who is stepping down as Lucent Technologies chairman today, to assume the role of chairman for Lucent Venture Partners immediately. Lucent Venture Partners will leverage external investments into Lucent Technologies' existing operations through the formation of joint marketing agreements, joint product development efforts, and possibly partnerships and acquisitions. The group will be closely aligned with Lucent Technologies' corporate strategies and operations. ''We'll be identifying technologies in the early stages of development that could complement what we're doing in Bell Labs, or that could fill a particular gap in our strategy,'' said John Hanley, managing general partner of the group. ''The focus will be on cutting-edge technologies that fill particular niches in communications networking.'' The group will have a presence on the East and West Coasts of the United States, but will look at investment opportunities worldwide. Its team will consist of Schacht, Hanley, and a handful of managers, as well as an advisory board of Lucent and outside executives. Initial investments by the group are expected later in the quarter. ------------------------------------------------------------------- I like this strategy that LU is undertaking. It will allow them to "knab" up companies or technologies before they really gain a big market presence. Is it common for tech. companies to begin their own Venture Capitalist Divisions? Regards, Serry Habash

To: MulhollandDrive who wrote (1385)	2/18/1998 3:51:00 PM
From: Capitalist	Read Replies (1) \| Respond to of 21876

It seems the most analysts would agree with me that the new Lucent Venture Firm was a very good strategic move. Here is an article about what the analysts think. Also, it answered my own question about other companies. Just a name to few that do this are SAP, CSCO, and ADBE..... ---------------------------------------------------------------------- Wednesday February 18, 3:09 pm Eastern Time Lucent fund to help it gain new technologies By Jennifer Westhoven NEW YORK, Feb 18 (Reuters) - Lucent Technologies Inc's new venture capital fund could be a nimble way for the telecommunications firm to snare up-and-coming technologies from start-ups, analysts said. Lucent, spun off in 1996 by AT&T Corp (T - news), will set aside $100 million initially for Lucent Venture Partners Inc, the company said on Wednesday. It will invest in emerging technologies such as data networking, semiconductors and communications software. ''It's a very good strategy, because Lucent can invest in new technologies without having to bring the development in-house,'' said Christopher Thompson, a voice communications principal analyst at DataQuest. ''They can leverage the rapid pace of small companies that might be stifled, or be very expensive to deploy, if they did it in-house,'' Thompson said. The group could help Lucent shake its lethargic reputation in the entrepreneurial arena. ''Lucent has been quiet and not very aggressive'' in venture capital, said Frank Dzubeck, networking analyst and president of Communications Network Architects Inc. He expects the fund to act like a similar group at Cisco Systems Inc (CSCO - news), with Lucent buying perhaps five or 10 percent of a start-up company to get in on the ground floor. ''Then, if they like it, they buy the company.'' The fund is likely to stick to second or third-round investments, as opposed to providing seed money, analysts and Lucent said. Several other high-tech firms already have venture capital groups in place, including Cisco, Adobe Systems Inc (ADBE - news), Intel Corp (INTC - news) and Newbridge Networks Corp (NYSE:NN - news; NNC.TO - news). Lucent Chairman Henry Schacht will step down to head the unit. The move comes as no surprise to most analysts. Schacht came out of retirement to head up Lucent after AT&T's break-up in 1995. But he was always slated to be a short-term mentor to Rich McGinn, who formally took over Lucent's reins today. ''Schacht has been through this. This is one of those areas where experience is worth a million dollars,'' said Dzubeck. A Lucent spokesman said ''Henry will be idea and vision, while John will run the day to day.'' John Hanley, an AT&T veteran, will be the managing general partner of the new venture capital group. ''We will invest in early stage companies that either complement or fill gaps in our own efforts,'' he said. A similar venture capital group at Lucent, a ''brainchild'' of Schacht, will remain to scour Lucent internally for ideas and technologies which might be worth forming smaller companies, a Lucent spokesman said. No board for the new unit has yet been named, but a Lucent spokesman said he expected it would be made up both of Lucent executives as well as outside executives in communications, networking and the venture capital fields. Lucent also declined to comment on any specific companies it might be eyeing. ---------------------------------------------------------------------- biz.yahoo.com Regards, Serry Habash