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To: E. Graphs who wrote (6441)	3/22/1999 10:23:00 AM
From: E. Graphs	Read Replies (1) \| Respond to of 29970

Time Warner effect The deal bodes will for Time Warner (TWX), since a takeover of MediaOne will lead to a restructuring of Time Warner Entertainment,which is 25.5 percent owned by MediaOne and includes Warner Bros., HBO and the bulk of Time Warner cable. "A Time Warner Entertainment restructuring would give Time Warner simplicity and control of its cable operations back," Cohen said. Analyst comments: >>Merrill Lynch analyst Jessica Reif Cohen said in a morning research note that MediaOne was ripe for a sale, but not necessarily to Comcast, which drew a $1 billion investment from Microsoft in 1997. "We believe this announcement continues the consolidation of the cable industry, which we think will persist," she said. "Within the next three to five years we believe there will only be a handful of cable operators left." She said Comcast is one of the best managed companies in the industry and that the transaction will result in cost savings of roughly $100 million. MediaOne, on the other hand, has "the worst operating statistics in the industry," she said.<< cbs.marketwatch.com Comcast to Buy MediaOne Comcast Corp. (Nasdaq: CMCSK) and MediaOne Group (NYSE: UMG), the nation's fourth and third largest cable providers respectively, have agreed to merge to become the world's biggest broadband communications company. The deal values MediaOne at $80.16 a share, based on Friday's close, which represents about a 32% premium over MediaOne's last closing price of $60.75. The merged company will serve more than 11 million U.S. cable customers and cover 18% of domestic households with its cable infrastructure. The companies generated more than $8 billion in combined 1998 revenues and about $2.4 billion in EBITDA (earnings before interest, taxes, depreciation and amortization). MediaOne shareholders will swap each share they own for 1.1 Comcast shares, giving them around 64% ownership of the combined company. Comcast Chairman Ralph Roberts and President Brian Roberts will retain their posts, and MediaOne Chairman, President, and CEO Chuck Lillis will become vice chairman. Three other MediaOne representatives will also join Comcast's board, bringing the number of directors to 14. In addition to its cable service operations, Philadelphia-based Comcast also owns QVC, Comcast SportsNet, and a controlling stake in E! Entertainment Television. MediaOne, based in Englewood, Colorado, provides cable in the U.S. as well as wireless communications services abroad -- in the U.K., Poland, Hungary, the Czech Republic, Slovakia, Russia, Malaysia, and India. fool.com