Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Internet Guru Discussion -- Ignore unavailable to you. Want to Upgrade?

To: steve harmon - analyst who wrote (909)	4/5/1999 9:22:00 PM
From: mike.com	Read Replies (2) \| Respond to of 4337

Steve - on IATV - I agree with Art's reply. I think the push to digital is going to be much faster than most anticipate. All of the recent deals have produced a lot of cash and that cash will best be put to use by investing in the next generation of set top boxes and the interactive services they will provide. "tci owning part almost makes it happen if they bring it in." This is not an "if" at all. TCI has already embraced the technology: actv.com It's only a matter of time Steve, only a matter of time. I think you agree.

To: steve harmon - analyst who wrote (909)	4/6/1999 9:34:00 AM
From: art slott	Respond to of 4337

Steve, IATV as per the joint press release in Dec. will be TV Guide's (Liberty/News Corp.) interactive browser. mediacentral.com

To: steve harmon - analyst who wrote (909)	4/6/1999 4:55:00 PM
From: mike.com	Read Replies (1) \| Respond to of 4337

IATV up again to a new high. It's already behaving like an internet stock (well, it hasn't hit 100 yet but it is up almost every day). By the way, did you see what happened to TUNE today? IATV already has a relationship with them and it will be both an active and interactive one. Hmmm, I like that group's video...click...just bought their cd. Put it on my cable bill.

To: steve harmon - analyst who wrote (909)	4/7/1999 7:46:00 AM
From: mike.com	Respond to of 4337

Steve, more news relating to IATV: Liberty Media Plans to Combine Internet Assets Into TCI Music By LESLIE CAULEY Staff Reporter of THE WALL STREET JOURNAL Liberty Media Corp. plans to transfer its interactive and Internet assets into TCI Music Inc., a publicly traded company it controls, in a move aimed at creating a currency that can be used for Internet and media deals. In tune with the current Internet frenzy among investors, Wall Street heartily embraced the proposed deal, pushing up TCI Music's stock from about $8 to more than $30 in heavy trading on the Nasdaq Stock Market, before closing at $29.5625. The combined operations will adopt the name Liberty Digital, the existing name of Liberty Media's interactive unit. Liberty Digital will trade under TCI Music's existing stock symbol, TUNE, on the Nasdaq. Cable programming veteran Lee Masters, whose resume includes the E! Entertainment cable network, will move from his post as head of Liberty Digital to become chief executive officer of the reconfigured company. Mr. Masters said the assets of the combined company would have a value of around $1 billion -- $650 million of that from the interactive and Internet assets that Liberty Digital would contribute. Liberty is the media investment arm of John Malone, the former chairman of cable giant Tele-Communications Inc., which was acquired last year by AT&T Corp. The proposed plan would shift some of Liberty Media's most attractive assets outside the corporate empire of AT&T, which technically owns Liberty Media as part of its purchase of TCI. Liberty Media executives insisted that wresting free of AT&T's grasp wasn't a goal, but acknowledged that would be one effect of the new structure. Liberty Media trades as a tracking stock of AT&T, and operates with almost complete autonomy from AT&T. Over time, Mr. Masters said Liberty Digital hopes "to be to new media and the Internet what Liberty was for cable programming," a nod to Liberty Media's pivotal role in helping nurture along, at various times, such media hits as Discovery and At Home Corp., the high-speed data service. He said Liberty Digital, armed with its new trading currency, intends to go trolling for new opportunities in the Internet and interactive sectors. "Publicly traded currency is a wonderful currency to do transactions with," Mr. Masters noted. TCI Music, New York, to date has garnered little attention within the Liberty Media empire. The company's principal assets include DMX, a satellite-delivered digital-music service; the Box, an interactive music-video service; and SonicNet (www.sonicnet.com1), an Internet network of music Web sites. Those assets have a combined value of about $400 million, Liberty estimates. 2News Corp. to Buy Rest of Fox/Liberty Networks Under the proposed plan, Liberty Digital would fold its growing stable of Internet and interactive assets into TCI Music. Those assets include equity investments in such ventures as priceline.com, iVillage, Sportsline USA and Drugstore.com. Liberty Digital also would contribute its rights to provide interactive-video services to TCI's cable systems. Those rights, which were part of the AT&T-TCI merger agreement, essentially guarantee the holder a chunk of channel space on TCI's upgraded cable-TV lines, and hence a guaranteed customer base of more than 12 million for new digital services. Mr. Masters day called those rights "beachfront property," and said Liberty Digital is well on its way to coming up with a development plan. He said the company is working on, among other things, plans for a 24-hour digital-TV channel that features "very simple, one-click interactivity." In exchange for contributing its Internet and interactive assets to TCI Music, Liberty Media would get 128.7 million newly issued shares of TCI Music's Series B common stock. Liberty Media said the transaction would push up its interest in TCI Music to 94% from 86% of the shares outstanding of TCI Music's Series A common stock and Series B common stock. TCI Music also would assume about $50 million in debt related to its new assets, and Liberty would lend TCI Music as much as $50 million "pursuant to a convertible note on terms to be mutually agreed." Liberty Media said debt currently owed by TCI Music to Liberty also would become convertible debt, on the same terms. ______________________________ Lee Master's office is right down the hall from ACTV's office in TCI's new National Digital Television Center in LA.

To: steve harmon - analyst who wrote (909)	4/7/1999 8:29:00 AM
From: mike.com	Read Replies (1) \| Respond to of 4337

Another IATV related article: TCI Music Shares Skyrocket On Plan With Liberty Media By LISA BRANSTEN THE WALL STREET JOURNAL INTERACTIVE EDITION SAN FRANCISCO -- If John Malone's goal in restructuring the relationship between TCI Music and its majority stakeholder Liberty Media Group was to unlock shareholder value, then his plan appears to be working. Shares of TCI Music more than tripled Tuesday on news that Liberty Media plan to turn over its Internet and interactive television assets to TCI Music in return for a bigger ownership stake in the company. The proposal by TCI Music calls for the Malone-led Liberty Media to turn over assets such as its stakes in Internet companies such as iVillage, Priceline.com, Sportsline.com and Drugstore.com in return for 128.8 million shares of TCI Music. The additional shares will boost Liberty Media Group's stake in TCI Music to 94% from 86%. TCI Music will change its name to Liberty Digital and will be headed by Lee Masters, a media executive credited with building the E! Entertainment Television cable channel. "This company is going to be Liberty Media's and John Malone's primary vehicle for investing in new media, the Internet and related technologies," Mr. Masters said. The plan is to both take small investments in Internet companies and also to acquire and operate some companies, Mr. Masters said. Liberty Media is the programming unit of Tele-Communications Inc., which was recently acquired by AT&T. The company shares trade as a tracking stock to AT&T. TCI Music already runs companies such as SonicNet, a network of music Web sites, and the Box Worldwide, an interactive music television network. But shares of TCI Music have foundered as the Box never took off with television users and its other holdings have failed to develop the kind of traffic seen on the most successful Web sites. Before Tuesday, the 52-week high for the shares was the 9 15/16 they hit last May -- and since then have traded as low as 2 11/32. Under the deal, Liberty Media will get the shares of TCI Music for about $600 million -- or $4.66 a share. The price was based on the average value of the shares in the 30 days before the proposal was made. The value of the stakes in publicly held companies that Liberty Media will turn over to the new company comes to about $300 million. Liberty Media will also contribute some of the space that Liberty was granted on the TCI cable lines when it did the deal with AT&T and with that Liberty Digital will develop 12 interactive cable channels, Mr. Masters said. TCI Music shareholders are expected to vote on the proposed transaction later this month. Keith Benjamin, an analyst at BancBoston Robertson Stephens, said the move is part of a trend of old-line companies hoping to capture the new-line valuations now being afforded Internet companies. "Everyone wants to monetize their Internet value," he said. Last week, for example, Ziff-Davis created an Internet tracking stock, ZDNet, out of its Internet holdings and investment bank Donaldson Lufkin & Jenrette has filed to do the same. Jessica Reif Cohen, an analyst at Merrill Lynch, said there was no way to determine if TCI Music shares deserved the jump they got. She added that Mr. Malone "is a terrific investor and cable is going to be the gatekeeper of the delivery system" so it makes sense for him to be focusing on Internet media and commerce. ______________________________________________ This keeps getting better and better.

To: steve harmon - analyst who wrote (909)	4/7/1999 9:20:00 PM
From: mike.com	Read Replies (1) \| Respond to of 4337

Steve, what did you do, go out and buy 3 million shares of IATV today? I take it you are watching the moves John Malone is making with his Liberty Media company. TUNE received all of the internet and interactive assets of Liberty Media and has soared the last 2 days. Well, IATV is right in the middle of this whole affair and its true value is being discovered. Over 7.2 million shares traded today so I'd say it is definitely being discovered but it's only just begun. Here's a nice article that hit the PR News today: Interactive Video is Next Internet Battleground > > BOSTON, April 7 /PRNewswire/ -- Internet operators are shaping up to deliver >video-based content via broadband networks, but broadcasters are ready to >respond by adding interactive services in the battle for consumer dollars. >According to a new report, broadcasters have the edge: 14% of households will >have interactive TV by 2002, compared to only 7% with broadband PC. > >These conclusions are described in a new Strategy Analytics report, >"Interactive Video Emerges - Broadband PC and Interactive TV prepare to do >battle" -- available to subscribers to their "Interactive Home" strategic >advisory service. > >A number of new and traditional players have staked their positions in this >new market within the past few months, including service providers (AOL, >@Home and Road Runner), network operators (Bell Atlantic, SBC, Deutsche >Telekom, US West, BT and NTL), broadcasters (DirecTV, Echostar, BSkyB and >BIB), and technology providers (GI, Scientific Atlanta, Philips, TiVo and >NCI). > >Video and interactivity are the catalysts bringing these players into the >same new marketplace: Internet providers offer enhanced content while >broadcasters add interactivity. > >The emerging broadband PC market is a result of increasing ownership of cable >and DSL modems. The analysts believe many consumers will not pay the current >high costs of broadband Internet, and that DSL and cable modems are still >unproven as far as full interactive video services are concerned. >Nevertheless, they forecast that, by 2002, broadband modems will be in 7% of >US households and 2% of European households. > >By this time, however, interactive TV services will be available in 14% of US >and 23% of European homes. Many of these services will arrive "by the back >door" as part of enhanced digital television services, allowing consumers to >access home shopping, video-on-demand and interactive information services >through their TV sets. > >"Interactive video will offer the Internet four great challenges," says David >Mercer, Strategy Analytics Interactive Home Service Director. "There is the >cost challenge, the usability challenge, the technology challenge and the TV >challenge. Internet operators may ultimately find that the challenge from >broadcasters is the greatest obstacle to success." > >Detailed market forecasts regarding European and US ownership are available >on request. > >Strategy Analytics provides strategic insights to IT technology firms around >the globe. > >SOURCE Strategy Analytics