TED TURNER: The "smart thing" for both Westinghouse and
Turner Broadcasting, according to several analysts cited in
today's ATLANTA CONSTITUTION, would be for the two companies to
combine and bid for CBS -- with Turner buying the network's
distribution and production entities and Westinghouse taking over
CBS TV and radio stations. Smith Barney analyst John Reidy:
"This may be too logical to happen, but we're keeping our fingers
crossed" (Unger & Kloer, ATLANTA CONSTITUTION, 8/23). REUTERS
also notes that Turner's "best bet" may be combining with
Westinghouse or restarting talks with NBC (DAILY VARIETY, 8/23).
The AP notes that partnerships with Microsoft and Seagram's are
still possible (AP/WASHINGTON TIMES, 8/23). The WALL STREET
JOURNAL reports that Time Warner (which holds a 19% stake in TBS)
is considering "an array of new arrangements" with Turner
designed to help them get a network, including a guaranteed night
of Warner Bros. programming on CBS (Shapiro & Jensen, WALL STREET
JOURNAL, 8/23).
BILL GATES: Microsoft Chair Bill Gates continued his media
tour in advance of tomorrow's Windows 95 debut. Gates, asked if
Microsoft is interested in investing in Turner Broadcasting:
"Microsoft does not have any plans right now to invest in any
media companies. It is the case that we are talking to people
about interactive content where you can browse things in a very
interesting way, and sometimes as we get into those partnership
discussions they talk about some type of investment. So I
wouldn't rule that out. But we are talking to a wide range of
people, and while Turner is a company that we very much admire,
and we certainly are talking to them. We are at the very early
stages of figuring out how we might be able to help each other"
("Moneyline," CNN, 8/22). Marianne Allison, a Microsoft
spokesperson, described the situation with Turner this way:
"It's in the stage of, I'll show you mine if you show me yours"
(USA TODAY, 8/23). The N.Y. TIMES is reporting that Microsoft is
weighing a $1B equity investment in Turner with discussions also
ongoing on the use of Turner's news and entertainment content on
Gates' new Microsoft Network (Geraldine Fabrikant, N.Y. TIMES,
8/23). The Microsoft Network debuts tomorrow along with Windows
95, with a site for NBC, including NBC Sports (N.Y. POST, 8/23).
Chase Manhattan is the first bank to sign on with The Microsoft
Network (AD AGE ONLINE, 8/23).
RUPERT MURDOCH: News Corp. "reported weaker-than-expected
earnings for the fiscal year," according to this morning's WALL
STREET JOURNAL. The company cited A$1.34B (about US$988M) in
annual profit, but the JOURNAL notes that a gain of A$23M from a
December '94 IPO for British Sky Broadcasting was used to write
down the value of certain operations, including the $350M cost of
starting NFL coverage last season (WALL STREET JOURNAL, 8/23). A
healthy U.S. TV ad market and the NFL rights were cited for the
26% rise in American TV earnings (REUTERS/DAILY VARIETY, 8/23).
