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To: kendall harmon who wrote (45863)	1/22/1999 8:05:00 AM
From: JeffA	Respond to of 119973

TSATA biz.yahoo.com

To: kendall harmon who wrote (45863)	1/22/1999 8:06:00 AM
From: judge	Read Replies (1) \| Respond to of 119973

tsata the deal is done 01/22 07:31 Hughes buys Primestar satellite business for $1.8b ENGLEWOOD, Colo., Jan 22 (Reuters) - Direct-to-home satellite provider Primestar Inc. said on Friday it agreed to sell its satellite businesses to Hughes Electronics Corp. [GMH-news] in two transactions for about $1.82 billion. Primestar agreed to sell its rights to acquire the Tempo high-power satellite assets to Hughes for about $500 million, including the assumption of about $465 million in advances by Primestar Partners to Tempo and $35 million in cash. In a separate transaction, Primestar, based in Englewood, Colorado, agreed to sell its direct broadcast satellite (DBS) medium-power business and assets for about $1.32 billion, made up of $1.1 billion in cash and 4.871 million shares of Hughes stock. El Segundo, Calif. based Hughes is a publicly-traded unit of General Motors Corp. [GM-news]. Primestar is struggling because it costs the company about $800 to get a new subscriber and roughly 45 months to recover the investment because the company buys medium-power dishes and leases them to customers. Because the turnover rate for subscribers is high, it is hard for the company to recover that investment. Primestar's 160-channel medium-power DBS service will be operated by Hughes' high-power satellite television company, DirecTV, for a period of two years. During that time, DirecTV, a rival of Primestar, will seek to convert Primestar's 2.3 million subscribers to its high-power service. Pursuant to a previously granted option to acquire the Tempo assets, Primestar will exercise its rights to sell the Tempo high power satellite assets to Hughes. Primestar's publicly traded part, TCI Satellite Entertainment Inc. [TSATA-news], which holds a 37.5 percent interest in Primestar, will receive about $67.5 million in cash or Hughes' stock as part of Hughes' purchase of about $465 million of advances to Tempo. Tempo is a wholly-owned unit of TCI Satellite. Other owners of Primestar include Time Warner Inc. [TWX-news], Cox Enterprises Inc., Comcast Corp. [CMCSA-news], U S West Inc. [USW-news], and General Electric Co.'s [GE-news] GE American Communications. The transactions, which have been approved by the Hughes and Primestar boards of directors, are subject to the approvals of General Motors' board, the consent of certain Primestar lenders, and regulatory and antitrust officials. Stock in TCI Satellite Entertainment Inc. [TSATA-news], the publicly traded part of Primestar, has been rising recently on rumors of the merger. It closed at $2.56, down $0.34, in Nasdaq Stock Market trade Thursday, up from $0.72 on Dec. 14. Hughes closed at $44.75, down $2.75, in New York Stock Exchange composite trade. Return to Headlines

To: kendall harmon who wrote (45863)	1/22/1999 8:20:00 AM
From: Tom Latham	Respond to of 119973

I'm a new and first time grandpa.. Daughter had a beautiful healthy boy, life is good. Talked with a retired fund manager yesterday for 3 hours as we waited. He had a idea that I have not heard expressed, said watch out for any company that can be taken out that is a NASDAQ MM trading co. I was holding 200 FVH as internet brokerage, he deems this as not important, that their MM contract is the money(profit) going foward. I mentioned JBOH (no position) he said same thing, their conracts in place and MM profits and abilities are the important part of these business. This because of the NITE focus and the expectation that as markets start much longer hours of trading they all become literally ECN,s for us to hit with trading activity 24 hours a day...... Fahnstock (FVH) and JBOH aren't the only companies that fit in this boat so watch this sector and the angle he presents....