Note: Between August 20 and September 2, the CPP
News-Clipping Service may be whacky, inconsistent, and a bit too
serious. Kevin is on vacation and has assigned his minions
the responsibility to get the news out to youse. We'll do
our best.
In today's headlines:
MCI-BRITISH TELECOM MERGER
WashPost: MCI Merger To Be Revised, Sources Say
NYT: British Deal to Buy MCI Is In Disarray
WSJ: BT-MCI Merger Deal's Value Reduced
OTHER MERGERS:
NYT: Knight-Ridder Near Sale of Unit
FIRST AMENDMENT:
WashPost: A National Speech Code From The EEOC
CABLE:
NYT: Of 14 New Cable Channels, Arts And Movies Make the Cut, Homes and
Gardens Do Not
WSJ: Time Warner Cable Picks Programming For New York System
INTERNET BUSINESS:
WashPost: Australian Firm Offers Costly Web Site Rights
WSJ: Amazon Countersues Barnes & Noble, Says Rival Must Assess Tax
Venture Capitalists Open their Wallets for the Internet
MEDIA OWNERSHIP:
WSJ: Vanity Fair's 'Businesses to Watch' Raises Selection, Disclosure
Issues
WEB RESOURCES:
NYT: Moonrise on the Internet
******************************
* MCI-BRITISH TELECOM MERGER *
******************************
Title: MCI Merger To Be Revised, Sources Say
Source: Washington Post (A1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-08/22/102l-082297-idx.html
Author: Mike Mills
Issue: Mergers
Description: The merger between British Telecom and MCI was altered
yesterday, with some analysts estimating that BT will be paying from 10
to 15 percent less than the $23.5 billion it had originally planned to
pay in its buy out of MCI. MCI announced last month that its
entrance into the local phone market would cost $800 million annually,
which was twice as much as its previous estimates. The merger, which
has come perilously close to collapsing in the last month, has been
approved by the FCC and would create a company with an annual revenue of
$43 billion and 43 million customers in 72 countries.
Title: British Deal to Buy MCI Is In Disarray
Source: New York Times (C1)
http://www.nytimes.com/yr/mo/day/news/financial/mci-british-telecommunicati
ons.html
Author: Mark Landler
Issue: Mergers
Description: 12 hours before MCI won the approval of the FCC for the
$23.4 billion merger with British Telecommunications, MCI disclosed that it
might revise the financial terms of the deal. "There can be no assurance as
to the outcome of the discussions," said an MCI statement. Although many
analysts believe that the deal can still be salvaged, others are not
certain what is to happen next. The only thing analysts agree on is that if
BT buys MCI, it will do so for 10 to 25 percent less
than the original terms of the deal. This soap opera began when MCI
warned shareholders that it could run losses as much as $800 million in 1997
alone as it was trying to break into the local phone business.
Title: BT-MCI Merger Deal's Value Reduced
Source: Wall Street Journal
http://www.wsj.com/
Authors: Steven Lipin & John J. Keller
Issue: Mergers
Description: The BT's aquisition of MCI will cost them 15-20% less than
originally thought, say analysts. The merger, which has been developing
for 10 months probably won't come to a close until the end of the year
because MCI shareholders must vote on it, and BT shareholders may have
another vote as well. The merger would be quite advantageous for both
companies and is supported by the FCC because of its "pro-competitive"
commitments.
*****************
* OTHER MERGERS *
*****************
Title: Knight-Ridder Near Sale of Unit
Source: New York Times (C5)
http://www.nytimes.com/
Author: Bloomberg News
Issue: Mergers
Description: British online provider M.A.I.D. announced that it is close
to acquiring Knight-Ridder Information, Inc. and its 650 specialty
databases, for what analysts believe could cost as much as $500 million.
Analysts
say the buy out would allow M.A.I.D. to halt the decline in its subscription
rate.
*******************
* FIRST AMENDMENT *
*******************
Title: A National Speech Code From The EEOC
Source: Washington Post (A23)
http://www.washingtonpost.com/wp-srv/WPlate/1997-08/22/047l-082297-idx.html
Author: Eugene Volokh (Op-Ed)
Issue: First Amendment
Description: The Equal Employment Opportunity Commission has filed a
lawsuit that proposes to create a "nationwide speech code" which would
make it illegal to say things in the workplace that are "severe or
pervasive" enough to create a "hostile or offensive" environment.
"Disseminating derogatory electronic messages regarding 'ebonics'" to
your co-workers was specifically prohibited in the text of the suit.
The author of this op-ed, a teacher of free-speech law at
UCLA, objects: "Private employers, like private newspaper publishers or
private homeowners are not bound by the First Amendment and may thus
restrict what is said on their property. But the United States
government, which is under a constitutional obligation not to abridge
'the freedom of speech,' can't go to court to insist on 'eradication' of
political speech that it thinks is reprehensible."
*********
* CABLE *
*********
Title: Of 14 New Cable Channels, Arts And Movies Make the Cut, Homes and
Gardens Do Not
Source: New York Times (A25)
http://www.nytimes.com/yr/mo/day/news/national/ny-cable-additions.html
Author: Lawrie Mifflin
Issue: Cable
Description: Time Warner Cable of New York City announced yesterday the
first additions to the city's cable system since 1992. There are 11 new
channels for basic service and three new "premium" movie channels. Time
Warner is in the midst of a five-year, $400 million upgrade for its
fiber cable system. The choice of channels was based on a 100,000 customer
survey. "We didn't use channel names in the survey, we used genres, to
try to keep the research pure and not let those who had the largest
advertising budgets carry the day," stated Barry Rosenblum, President of
Time Warner
Cable of New York City.
Title: Time Warner Cable Picks Programming For New York System
Source: Wall Street Journal (B9)
http://www.wsj.com/
Author: N/A
Issue: Cable programming
Description: Many are called, but few are chosen. That's the story at
TW's New York City cable system, which will add 14 new cable services as
part of the $400 million upgrade of the system. The new package
includes Animal Planet (a nod to former headliner Susan Goslee), Independent
Film
Channel, Ovation, HBO 2, Cinemax 2, and Starz! (That's their
exclamation point, not mine.) Some critics panned the addition of 4 Time Warner
owned channels to the line-up.
*********************
* INTERNET BUSINESS *
*********************
Title: Australian Firm Offers Costly Web Site Rights
Source: Washington Post (G1)
http://www.washingtonpost.com/wp-srv/WPlate/1997-08/22/150l-082297-idx.html
Author: Rajiv Chandrasekaran
Issue: Internet Business
Description: InterNIC, the official registry of Web sites which is run
by Network Solutions, Inc. can be found on the web at www.internic.net.
Two-year rights to an Internet address, or domain name, will cost you
$100 to register. All was well at InterNIC until this past June, when
an Australian company called Internic Software, located at
www.internic.com started offering registration for $250 for the same two
years. The FTC is looking into the situation and yesterday stated that
the site likely violates federal regulations against deceptive trade
practices. The people at Network Solutions said that Internic Software
had been taking the domain names, submitting them to InterNIC, and then
kept $150 for each site. Thus far more than 2,000 people have been
lured to pay Internic Software's inflated price. Network Solutions said
that they would not begin the process of revoking Internic's address
until the FTC finished its investigation.
Title: Amazon Countersues Barnes & Noble, Says Rival Must Assess Tax
Source: Wall Street Journal (B8)
http://www.wsj.com/
Author: N/A
Issue: Internet Commerce
Description: Online book seller Amazon.com
has charged that Barnes & Noble is competing unfairly by not collecting
sales taxes on books sold over the net. Sales taxes for mail order products
are usually only collected when the buyer lives in the same state as the
seller, and that has been the practice for cybercommerce, too. But
Amazon.com claims that since B&N has over 1000 stores, with a physical
presence in almost every state, they should be collecting sales tax for
any online sale to a customer in a state where there is a B&N store.
Needless to say, B&N disagrees.
Title: Venture Capitalists Open their Wallets for the Internet
Source: Wall Street Journal (B14)
http://www.wsj.com/
Author:David Bank
Issue: Internet
Description: Venture capitalists keep pumping money into net-related
start-ups, although they seem to favor "later stage investments" in
existing companies over brand new ideas. "Technology-based companies
accounted for $2.23 billion in investments in the [second] quarter, up
35% from $1.65 billion a year earlier. Of that, Internet related companies
attracted $561.5 million in funding, more than double last year's $208.8
million." The research was prepared by Price Waterhouse LLP.
*******************
* MEDIA OWNERSHIP *
*******************
Title: Vanity Fair's 'Businesses to Watch' Raises Selection, Disclosure
Issues
Source: Wall Street Journal (B13)
http://www.wsj.com/
Author: G. Bruce Knecht
Issue: Media ownership
Description: Vanity Fair is creating a new publication called
"Businesses to Watch," which it describes as "a digest-sized guide featuring
top-line investment information..." The criteria for being featured as a
"business to watch"? That you buy at least two pages of national advertising in
Vanity Fair magazine this fall. The new publication will be sent to
10,000 of VF's most affluent subscribers and to 200,000 subscribers of American
City Business Journals, which, like VF, is part of the Newhouse media
empire. Will the selection criteria be explained to readers? "That's
not actually clear to me," said the magazine's marketing director.
*****************
* WEB RESOURCES *
*****************
Title: Moonrise on the Internet
Source: New York Times (A27)
http://www.nytimes.com/
Author: Jeff MacGregor
Issue: Web Resources
Description: The 205 year old Old Farmer's Almanac is now on the Web
(www.almanac.com).
*********
And in the "life imitates art" department: "Cambodia Hopes to Be Hot
Spot for Vacationers" (WSJ, B12B)