The recent resignation of Comsat CEO Bruce Crockett and the
"maximum shock value" intended on the rest of the company, is
examined by Mike Mills of the WASHINGTON POST. Comsat owns 80%
of Ascent Entertainment, owners of the Avalanche and Nuggets. By
removing Crockett after "poor" earnings reports, Comsat's board
"essentially repudiated his vision of making Comsat a
communications and entertainment conglomerate." After being
named CEO in '92, Crockett initially wanted to sell the Nuggets,
saying it was "an embarrassment" for a satellite company to own a
sports franchise losing both games and money. But under deputy
Charlie Lyons, the Nuggets started winning and that, along with
success in the hotel movie business, inspired Crockett to develop
Comsat along the line of Time Warner or TBS. In buying the
Avalanche and looking to finance Denver's new Pepsi Center in
Denver, company sources say Crockett was "taken in by the
glamour" of pro sports. But such endeavors made Comsat's
investors and analysts "uneasy" on the risks of pro sports
ownership. The pressure led to the spin-off of the entertainment
business into Ascent. But now, with results showing an even
rougher year in '96, analysts have called for an immediate sale
of Ascent. Comsat VP/Corporate Affairs Janet Dewar confirmed
they are considering such a move. Dewar: "Ascent is a valuable
asset ... But as it grows, it's better on its own." That action
will be spearheaded by new CEO Betty Alewine, who is under
"enormous pressure to act swiftly" (WASHINGTON POST, 7/29).
