Printer Friendly

BELL ATLANTIC, TCI AND LIBERTY MEDIA TO MERGE

PREMIER COMMUNICATIONS, INFORMATION AND ENTERTAINMENT COMPANY
 ENVISIONS NEW CUSTOMER CHOICES, GROWTH OPPORTUNITIES
 IN NEW SERVICES, EXPANDED MARKETS
 PHILADELPHIA and DENVER, Oct. 13 /PRNewswire/ -- Bell Atlantic Corporation (NYSE: BEL), Tele-Communications Inc. (NASDAQ: TCOMA) and Liberty Media Corporation (NASDAQ: LBTYA) today announced that they have signed a letter of intent to merge, creating the world's premier communications, information and entertainment company.
 "Bell Atlantic, TCI and Liberty Media combine leading telephone, wireless and cable networks in the U.S. and overseas with cutting edge video programming and new interactive, multimedia technologies," said Raymond W. Smith, chairman and CEO of Bell Atlantic. "Together, we will help make the information superhighway a reality.
 "This is the perfect information age marriage. We have an opportunity to create exceptional long-term shareholder value by offering customers convenience and value and a wealth of new services -- when they want them, where they want them and how they want them."
 TCI President and CEO/Liberty Media Chairman John C. Malone said, "By combining the skills and resources of these three great teams, we will make full service networks a reality, creating exciting new products and services. The growth potential of this combination is truly unlimited for all stakeholders -- customers, employees and shareholders."
 Smith said, "Bell Atlantic is committed to expanding its full service network capabilities quickly within its region. We will complete fiber optic video network capabilities in some areas in 1994 and in our top 20 current markets by 1998. And we will take advantage of the skills and commitment of TCI employees to accelerate construction in major TCI markets, beginning soon after we close this deal."
 "After the merger closes, our new company will blend complementary skills to explore ways to establish mutually beneficial relationships with cable operators that will both conserve capital and promote competition within the industry. We will continue to pursue joint facilities agreements with all cable operators, including the in-region systems of TCI and Liberty."
 Smith will continue as chairman and chief executive officer of the merged Bell Atlantic. Malone will become vice chairman and a director of the corporation, and will play a key role in the new Bell Atlantic.
 The companies expect to close the transaction in the latter part of 1994.
 (Editors: See Sidebar.)
 The new Bell Atlantic will be one of the largest information distribution and multimedia companies in the world, defining a new industry with its considerable programming and delivery resources. It will have a presence in 59 of the top 100 U.S. markets, with more than 22 million current telephone and cable customers. It will have substantial growth opportunities in its existing businesses, as well as in the new multibillion-dollar PCS and interactive, multimedia television markets. It will solidify America's information age leadership, generating jobs and exports well into the 21st century.
 "By combining the strengths of Bell Atlantic, TCI and Liberty Media, we will create a company that provides customers with choice, control and convenience, and shareowners with a growth vehicle now and into the next century," Malone said.
 "Ray Smith and I share a vision that will create a great new company. We are tremendously excited about this combination.
 "One of the reasons this deal makes sense is that Bell Atlantic clearly has evolved into a smart, aggressive competitor that knows how to take care of customers and take advantage of growth opportunities. The real opportunity is that the combination of these companies will ultimately be valued on the kind of growth multiples they deserve. The market may not yet have fully realized this."
 Addressing opportunities to create shareowner value, Smith cited:
 Accelerated revenue growth: "With the growth we will generate from new product development, wireless, international and cable operations -- plus the revenue that will be generated by new full service network platforms, interactive multimedia and telephony -- we believe the new company will produce strong revenue growth building to the 10 percent range."
 Market-focused capital deployment: "Our capital investment strategy will be consistent with that of other growth companies, investing primarily in new market opportunities and revenue-generating technologies."
 Economies of scale: "TCI and Bell Atlantic already are the most efficient operators in their respective markets. The merger should result in continued margin enhancements as we share development, marketing and technology costs."
 Global marketing opportunities: "With the creation of a single identity and a national, even global, customer base, we will make our branded services the industry standard and our video and multimedia products the preferred choice of customers."
 Increasing values for content: "The growing customer demand for content that has fueled rising values for programming will only increase as we build the broadband highway. This transaction will boost those values further, as we marry content with enhanced platforms to create a national network of distribution systems."
 Quality and customer service: "We will enhance the value of both our telephone and cable systems through the widespread deployment of state-of-the-art operational support systems. Delivering the best package of services over the best network in the world is simply a powerful combination."
 In the merger, Bell Atlantic would issue a new Class B Bell Atlantic common stock which is not expected to pay dividends for five years, allowing internally generated funds to be used for additional growth investments.
 Bell Atlantic brings to this merger expertise in switching, landline and wireless network design and deployment, enabling the company to provide advanced intelligent network services to its 13 million cellular, consumer, business and government customers. Bell Atlantic is regarded as the most forward-looking U.S. telecommunications company in the development of interactive multimedia services. It also has extensive international interests, including a significant ownership stake in Telecom Corporation of New Zealand, and it offers network services and consulting to telephone authorities throughout the world.
 TCI is the largest cable television provider in the world, serving more than 20 percent of the U.S. cable customer base. Its 1,200 cable systems serve over 10 million subscribers in 49 states, Puerto Rico and
Washington, D.C. The company also holds interests in cable operations in the United Kingdom, Norway, Sweden, New Zealand, Israel and Ireland. In addition, it owns substantial interests in such programming ventures as Turner Broadcasting and the Discovery Channel.
 Liberty Media has extensive programming holdings, including interests in the Black Entertainment Network, Prime Network, Family Channel, QVC, Home Shopping Network and many sports programming


ventures. Liberty Media also holds interests in 17 cable companies serving approximately three million subscribers.
 (Editors' Note: There will be a press conference today (Wednesday, October 13, 1993) at 10 a.m. at the Hudson Theatre at the Macklowe Hotel, 145 West 44th Street, New York, New York. The press conference will be broadcast to the Hyatt Regency Hotel, Regency "A" Suite, 400 New Jersey Avenue, N.W., Washington, D.C. and also will be available via teleconference at: 1-800-424-9750. The teleconference will be rebroadcast at noon and at 3 p.m. over the same number.)
 /delval/
 -0- 10/13/93
 /CONTACT: Bell Atlantic, 215-963-6363 or 703-974-1720/
 /ADD ONE -- BELL ATLANTIC -- TO FOLLOW/
 (BEL TCOMA LBTYA)


CO: Bell Atlantic Corporation; Tele-Communications Inc.;
 Liberty Media Corporation ST: Pennsylvania, Colorado IN: TLS SU: TNM


LJ -- PH2ONE -- 1497 10/13/93 08:42 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 13, 1993
Words:1197
Previous Article:PECO SHOWCASES NGV COMMITMENT AT 'CLEAN ACROSS AMERICA' PHILADELPHIA STOP
Next Article:SEQUENT PROVIDES OPEN DECISION-SUPPORT SYSTEM FOR THRIFT DRUG; NEW SYSTEM WILL SPEED ANALYSIS OF SALES AND DISTRIBUTION DATA FOR SUBSIDIARY OF J.C....
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters