
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, June 4, 1994                   TAG: 9406080014
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: 
DATELINE: ATLANTA                                LENGTH: Medium

COMING SOON: NEW PROGRAMS

A $2.3 billion deal potentially creating the nation's third largest cable television system is being discussed by Cox Enterprises Inc., parent of Cox Cable Roanoke, and Times Mirror Co., also a diverisified media company and owner of the Los Angeles Times.

Times Mirror confirmed Friday it has a tentative agreement with Cox, the privately held owner of 17 daily newspapers including The Atlanta Journal-Constitution.

Atlanta-based Cox issued a statement later Friday confirming ``serious discussions'' with Times Mirror about cable, but the company declined further comment.

Both companies, though known mainly for their newspapers, have sizable cable TV operating businesses. USA Today reported Friday the companies plan to combine their cable operations into a new publicly held company that would be run by Cox.

Los Angeles-based Times Mirror, though not specifying the type of deal it was discussing with Cox, said in a statement: ``We do have an agreement in principle with respect to the aggregate consideration of approximately $2.3 billion, and other significant terms, but a definitive agreement has not yet been executed or delivered.''

Cox in April saw a proposed cable partnership with Southwestern Bell Corp. fall apart because of fears that the federal government's new cable regulations would severely cut revenues, but Cox said at the time it would continue to look for ways to expand its cable business.

John S. Reidy, a cable analyst with Smith Barney Shearson in New York, said the things that killed the Cox-Southwestern deal should not threaten this one.

``In the case of Southwestern, you had a phone company that didn't know what was going on in cable pulling out. Here you've got a smart cable company, in Cox, taking control of a successful cable operation, in Times Mirror,'' Reidy said. ``I don't have any doubt of this coming together.''

A combination of the Cox and Times Mirror cable businesses would have about 3 million customers and rank in size behind only Tele-Communications Inc. and Time Warner Inc.

Cox is the nation's sixth-biggest cable company with 1.8 million subscribers, including systems in San Diego, southeastern Virginia and the New Orleans area.

Times Mirror is ranked 11th with 1.2 million cable subscribers, including systems in Phoenix, Orange County, Calif., and suburban San Diego.

Reidy said a Cox-Times Mirror partnership would likely be welcomed by the Federal Communications Commission, whose recent moves to regulate cable have been attacked by the industry.

``The biggest winner may be FCC Chairman Reed Hundt, who now can say, `See, I didn't hurt the cable industry,' '' Reidy said.

by CNB