Microsoft announced it will make an investment of $1B
in Philadelphia-based Comcast, the nation's fourth-largest
cable TV operator (Microsoft). Comcast owns the 76ers,
Flyers, CoreStates Center, CoreStates Spectrum, AHL Phantoms
and the NPSL Kixx. The deal gives Microsoft an 11.5%
nonvoting stake in Comcast and "represents Microsoft's most
aggressive step yet from technology into media." Wall
Street "roared its approval," as Comcast Class A special
nonvoting stock rose $2.94 a share to a one-year high of
$21.37 and Comcast's regular stock was up 17.5%, $3.19, to
close at $21.44 (Rozansky, Kanaley, & Fernandez, PHILA.
INQUIRER, 6/10). In N.Y., Mark Landler writes the deal is a
boost to cable, adding that the "mere fact that the nation's
pre-eminent software developer has backed a family-
controlled cable company speaks volumes about the shifting
landscape in communications" (N.Y. TIMES, 6/10).
CABLEVISION: Cablevision announced yesterday it will
acquire 10 N.Y.-area cable systems from TCI for $1.1B,
expanding its size by 50% and "gaining a firm grip on much"
of the N.Y. market (Jon Elsen, N.Y. POST, 6/10). The
HOLLYWOOD REPORTER's Scott Hettrick writes that as part of
the deal, TCI would gain a one-third stake in MSG "if
Cablevision's proposed deal to buy MSG is approved."
Hettrick adds that an affiliation deal with "at least" six
of the seven SportsChannel RSNs that would give TCI-backed
Fox Sports Net its first access to the "coveted" New York
market "could come as early as this week." But,
SportsChannel FL, in which Cablevision's Rainbow has a 50%
stake with Wayne Huizenga, "most likely won't join the Fox
Sports Net fold," as Huizenga's stake is "expected" to
increase to 70% this week (HOLLYWOOD REPORTER, 6/10).
