Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, December 22, 1994 TAG: 9412220107
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: Associated Press
DATELINE: SEATTLE LENGTH: Medium
The deal with TCI's Technology Ventures unit provides The Microsoft Network with technical expertise for developing services that can run over a cable-TV wire, which offers better sound and video capability because it can carry more signals than a phone wire.
The Microsoft Network won't be available, however, until the software company starts selling Windows 95, the next version of the Windows personal computer operating program.
The company repeatedly has postponed shipping Windows 95 because of technical glitches. Tuesday, the product's delivery date was pushed back from midsummer to August 1995.
TCI considered investing in other on-line services but chose Microsoft's nascent venture because ``we thought they had the best business plan ... and would be the best partner for us,'' said Bruce Ravenel, senior vice president of TCI Technology.
Microsoft holds the remaining 80 percent of Microsoft Online Services Partnership as managing partner. The company would consider other investment offers but is not seeking them, said Russ Siegelman, general manager of Microsoft's on-line services program.
TCI's investment strategy is to be a silent minority partner with a long-range view, rather than looking for quick returns, Ravenel said. The rapid growth of PC ownership and usage makes the investment ``extremely significant to our future,'' he said.
In a telephone news conference, he and Siegelman would not say how many shares were involved in the transaction, which already has been completed.
TCI, based in Englewood, Colo., has nearly 11 million basic-service customers in 48 states and interests in Cable News Network, Home Shopping Network and other cable networks.
This year TCI was reorganized into four groups - domestic cable, domestic programming, international cable and programming and technology. Last month TCI directors approved a plan to create stock in the four subsidiaries and make the corporate parent into a holding company.
That plan has yet to be put into effect, however, and the investment in Microsoft Online was in TCI common shares, TCI spokeswoman Lela Cocoros said.
The Microsoft Network will begin as a service that computer owners access through a phone line. It could have a cable option as early as 1996, Siegelman said.
He said it was too early to know what additional services might be offered, but they are likely to take advantage of the additional capacity for higher speed with video images and sound.
``We'll announce them as they come up,'' he said.
by CNB