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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme/No Pennies -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Big who wrote (45425)	1/21/1999 10:27:00 AM
From: Trooper	Respond to of 119973

They got hit hard earlier. Seem to be rebounding now.

To: Mr. Big who wrote (45425)	1/21/1999 10:28:00 AM
From: jopawa	Read Replies (1) \| Respond to of 119973

SLVN safe Power Lunch play today, internet initiative just announced

To: Mr. Big who wrote (45425)	1/21/1999 10:31:00 AM
From: Nathan G	Respond to of 119973

TSATA Deal could be announced tomorrow. DirecTV in Talks to Buy Primestar Assets, Person Familiar Says DirecTV in Talks to Buy Primestar Assets, Person Familiar Says El Segundo, California, Jan. 21 (Bloomberg) -- DirecTV Inc., the largest U.S. satellite-television company, is in talks to buy the assets and subscribers of No. 2 Primestar Inc., which faces a looming cash shortage, a person familiar with the talks said. DirecTV, owned by General Motors Corp.'s Hughes Electronics Corp., is considering a complex transaction that includes $500 million in cash for Primestar's 11 high-power frequencies and additional payments as Primestar's 2.3 million customers convert to DirecTV's services, the New York Times reported. Primestar also has held talks on a possible sale with No. 3 EchoStar Communications Corp. Primestar, owned by a group of cable-TV companies and the public, has sought a buyer to overcome a financial crunch brought on by high customer turnover and marketing expenses. Primestar could run out of cash within six months unless it cuts costs dramatically or brings in new money, analysts said. ''They've got to make something happen,'' said Jimmy Schaeffler, chairman of the Carmel Group, a satellite-TV consulting firm. ''There's intense pressure on Primestar to do something.'' DirecTV spokesman Bob Marsocci declined to comment on the talks yesterday. A transaction between DirecTV and Primestar could be announced by tomorrow, analysts said. SkyReport, a satellite-TV industry newsletter, reported on its Website late Wednesday that an agreement between the two had been reached. Primestar Debt Primestar is carrying about $1.9 billion in debt, or about $750 a subscriber, said Armand Musey, a C.E. Unterberg, Towbin analyst. That debt load makes it unlikely that any buyer would purchase the company outright, analysts said. ''The only thing that is getting any type of interest here is some kind of deal where subscribers are purchased on a converted basis,'' said Stephen Blum, president of Tellus Venture Associates. Primestar has been hurt by costly marketing and high turnover because, unlike DirecTV and Echostar, it leases its satellite dishes and related equipment to subscribers. Its customers are more likely to quit the service than those at DirecTV and EchoStar, who must pay for their dishes and other equipment. Primestar also operates a medium-power system that uses a slightly larger dish than the high-power systems increasingly favored by consumers. Both DirecTV and EchoStar operate high- power satellite systems. Primestar has been viewed as a takeover target since aborting a bid to upgrade its medium-power operations by purchasing the high-power satellite assets of News Corp. and MCI WorldCom Inc. Federal antitrust regulators opposed the $1.1 billion purchase, saying it would give Primestar's cable owners undue control in a competing industry. Its cable-industry shareholders include Time Warner Inc., Newhouse Broadcasting Corp., Comcast Corp. and MediaOne Group Inc. and Cox Communications Inc. New Direction Primestar Chairman and Chief Executive Carl Vogel redirected the company's efforts in recent months, saying it will continue its medium-power business while taking over high-power satellite licenses held by Tempo Satellite Inc., an affiliate of TCI Satellite Entertainment Inc., which owns 37 percent of Primestar's common stock. A sale of Primestar's assets would bring further consolidation within an industry vying to win customers from cable-TV operators. DirecTV, which has 4.5 million subscribers, said on Dec. 14 that it will buy No. 4 U.S. Satellite Broadcasting Co. for $1.25 billion. That acquisition by El Segundo, California-based DirecTV followed EchoStar's November announcement that it will purchase the News Corp. and MCI WorlCom satellite TV assets for $1.16 billion in stock. EchoStar has 1.9 million subscribers. Shares of Hughes Electronics, DirecTV's parent, fell 3/4 to 47 1/2 yesterday. Echostar rose 1/32 to 52 3/8. TCI Satellite gained 11/16 to 2 29/32. TCI Satellite's shares have more than doubled since the start of the year. Schaeffler said the gain was caused in part by sale rumors.