SkyREPORT.COM News Headlines
News Update For 12/6/99
GM To Discuss Hughes Spin-off Today
Today, the board for General Motors will hold a much-anticipated meeting in Detroit, where members are expected to discuss the future of the company's Hughes Electronics business. In another twist involving the automobile giant and its satellite business, GM itself has been labeled by Barron's as a possible takeover target because of its Hughes interest. AT&T and MCI WorldCom - and possibly General Electric - are among those seen as potential buyers, according to the business publication. AT&T has long distance and cable TV properties, and once held a stake in Hughes' DirecTV business. AT&T Chairman C. Michael Armstrong headed Hughes before joining the communications giant. As for today's meeting, the board reportedly wants to see how Hughes' businesses would operate if GM spun off the company. The board asked Hughes officials several months ago to prepare a presentation outlining each piece of the satellite-based company, analysts said. Last week, GM said Hughes would be a hot topic for the board, but declined to say whether a spin-off will be discussed.
DirecTV Launches More Local Channels
DirecTV launched local channel service in Denver, Washington, D.C., and in the San Francisco Bay area over the weekend. DirecTV customers in the San Francisco/Oakland/San Jose designated market area now have access to a local channel package that includes KGO (ABC), KPIX (CBS) and KRON (NBC). DirecTV said it's in active discussions with KTVU (FOX) in San Francisco and will begin broadcasting the station as soon as an agreement is reached. In Denver, stations offered are KMGH (ABC), KCNC (CBS), KUSA (NBC) and KDVR (FOX). In Washington, D.C., stations include WJLA (ABC), WUSA (CBS), WRC (NBC) and WTTG (FOX). In addition to local broadcast network channels, a national PBS feed is included in each local channel package.
News Corp.-MCI Jump DISH Offering
News Corp. and MCI WorldCom increased their offering of EchoStar Class A common stock to 12 million shares. News Corp. and MCI WorldCom got the stock last year in exchange for DBS assets they once controlled and to settle litigation with EchoStar. News Corp. received 24 million EchoStar shares and MCI WorldCom received 5.9 million shares under the deal. EchoStar Communications also increased its offering of convertible subordinated notes to $750 million. Proceeds from the offering will fund subscriber acquisition costs and the construction and launch of additional satellites. Other expenses, including potential acquisitions and debt service, also could be paid with the funds.
FCC Reaffirms Tenant Antenna Rights
The Federal Communications Commission recently denied petitions from the Community Associations Institute (CAI) and others to restrict the rights of tenants who choose to install outdoor antennas. The CAI argued that allowing tenants to install over-the-air reception devices without permission from their local community association might cause unnecessary property damage. The Satellite Broadcasting and Communications Association was one of several organizations that opposed the CAI position. The FCC document outlining its reasons for denying the CAI's request said, among other things, that the Institute's concerns had already been addressed in another FCC rulemaking. "To the extent CAI expresses legitimate concern for preventing property damage, the commission (has) addressed this concern," it read. The same FCC order also addressed a similar petition from the National Association of Broadcasters regarding antennas installed on common and restricted access property. "After careful consideration of the pleadings filed in this proceeding," the FCC said, "we find that the parties have presented no new arguments or facts that cause us to change our prior determination ... We therefore deny the petitions for reconsideration and affirm the Second Report and Order adopted by the commission in the above-captioned matter."
SkyBOX: Christmas Cheer-Cable Style
Looks like the cable guys are really getting into the Christmas spirit. Like a pack of two-year-olds with sticky hands outheld. First we got word that a Time Warner system in North Carolina has come up with a new tactic to rid itself of those pesky dishes. Old West style. With a bounty on each dish turned into a TWX "sheriff." That's right: $100 per dish. Time Warner will fork over the cash as long as the dish giver agrees to have digital cable installed (with a month's free programming no less). So what, we wonder, is next? Dish bounty hunters? Wirehead posses sent out to round 'em up and bring 'em in? Of course, some of our friends in the DBS biz have a different take on this. One wag at DISH (which actually pioneered this bounty business in the scramble for PrimeStar customers) suggests this is the perfect way for existing customers to upgrade to the slick new DISH 500. After all, the Time Warner guys don't say you have to keep their digital cable. And with several dozen fewer channels than offered by home satellite, why would anyone? As if dish bounties weren't enough, Time Warner also showed its grasp of Christmas, well, grasping in Federal Court this week. Speaking before a Federal Appeals Court, a TWX attorney argued that the company has a First Amendment right to own as many cable franchises as it can afford. After all, he argued, cable companies are just like editors, choosing content for their readers. Yeah. And Bill Gates is just a new age David Brinkley choosing content for computer owners.
PEOPLE: Tristani To Stay at FCC
*Commissioner Says No To House Run - Gloria Tristani plans to remain at the Federal Communications Commission, ending speculation that she would return to New Mexico to run for the U.S. House of Representatives. Had Tristani - a Democrat appointed by President Clinton - left the agency, the FCC would have been divided 2-2 between Democrats and Republicans. That would have made it tough for Chairman William Kennard to advance his agenda. *Blonder Tongue Promotes Westcott - Norman Westcott was appointed senior vice president of operational services at Blonder Tongue Laboratories, a manufacturer of electronics and systems equipment for the franchised and private television industries. Westcott has been with Blonder Tongue since 1994. *Shapiro Slides Into New ESPN Post - Mark Shapiro, who successfully developed and oversaw ESPN's multimedia SportsCentury project, was promoted to vice president and general manager of ESPN Classic. In this newly-created position, Shapiro will focus on the continued development and marketing of ESPN Classic. *Compaq Techie Jumps To SoftNet - Andrew Cromarty was named chief technology officer of SoftNet Systems, a San Francisco-based high speed broadband services company. Cromarty previously worked at Compaq Computers.