To: Daniel Schuh who wrote (17640 ) 2/25/1998 9:43:00 PM From: Daniel Schuh Read Replies (2) | Respond to of 24154
Microsoft-TCI set-top deal getting cold? news.com Nearly two months after Tele-Communications Incorporated (TCOMA) and Microsoft (MSFT) reached an agreement to use Microsoft technology in next-generation digital TV set-top boxes, analysts are saying that a chill has set in on negotiations, highlighting the wariness which TCI harbors for the software giant's clout. As well they should. I'm no fan of the cable monopoly either, but they got some competition on the horizon and less than infinite resources. Malone and crew managed to get cable deregulation through congress, I assume he'd know better than to let Bill take control.Now, TCI and Microsoft appear to be at a loggerheads over how to structure a deal to finance deployment of Windows CE-based set-top boxes. "Negotiations have clearly fizzled," says Cynthia Brumfield, an analyst with Paul Kagan Associates. Other industry analysts agree with her characterization. Previous reports have stated that TCI was not enthusiastic about the negotiations since Microsoft tried to strong-arm its way into the deal. But but but. . . standard Microsoft business practice. Maybe Microsoft sent in Joachim Kempin prematurely.Ultimately at issue is TCI's dilemma: TCI wants Microsoft to finance a new array of interactive services while maintaining control over its own destiny. The cable giant fears giving Microsoft a chance to exert the kind of dominance that it now enjoys over the PC industry, yet it also needs its help in paying for the deployment of the set-top boxes. And TCI thinks they're going to get the money without strings? Maybe they should have just gone to the mob. Got to be a better way. I hope Malone doesn't run a stable of race horses; if he does, better get armed security. Cheers, Dan.