OVITZ FALLOUT, DAY 2: The hiring of Michael Ovitz by Disney
away from Hollywood powerhouse, Creative Artists Agency, still
has Hollywood "reeling," according to the L.A. TIMES. Combined
with Disney's $19B purchase agreement with Capital Cities/ABC,
the news is "expected to prod other media giants, such as Viacom
Inc., Sony Corp. and MCA, to examine whether they are being left
on the sidelines" (Bates & Eller, L.A. TIMES, 8/16). One
producer from a rival company compared the scene to the "first
stage of the recreation of the universe." Alan Bell, President
of the Broadcast Division of Freedom Newspapers, warned against
ending up with "three companies and four CEOs in the
entertainment industry" (Adam Pertman, BOSTON GLOBE, 8/16).
THAT'S A NICE MOUSE, HERE BOY: Disney may sell as much as
$5B in bonds to fund the Cap Cities acquisition. Analyst Carol
Levenson: "If anyone can sell a $5 billion bond deal, it will be
Disney" (DOW JONES NEWS SERVICE, 8/16).
SATELLITE BIZ BOOMING: TCI, the U.S.'s largest cable
systems operator, said yesterday that its Primestar direct
satellite TV service was adding 10,000 customers weekly and
should have cash flow at a rate of $80M a year by the middle of
'96. TCI finance exec Bernard Schotters said Primestar's
customer base, which totaled about 230,000 on June 30, should hit
500,000 by year's end. Primestar is past the break-even point
(REUTERS/DAILY VARIETY, 8/16).
GOTTA BUY SOMETHING: Turner Broadcasting is "seriously
considering" a bid for Samuel Goldwyn Co., an independent film
maker (Charles Haddad, ATLANTA CONSTITUTION, 8/16).
