What Microsoft wants with Comcast Corp.

Multichannel News, June, 1997 by Ellis, Leslie

It looks like convergence all over again, but this time between data communications and cable, not telcos and cable. Microsoft Corp.'s decision last week to plow $1 billion into Comcast Corp. gave overnight validation and a financial boost to almost every operator and vendor in the business.

The software giant wants more than a financial return for its $500 million in nonvoting stock and $500 million in convertible preferred shares. It wants to give a nudge to cable operators building the most efficient broadband digital pipeline to personal computers and set-top television devices. Combined with Tele-Communications Inc.'s sale of 10 cable systems to Cablevision Systems Corp. for a 33 percent Cablevision stake, the Microsoft deal helped to lift all...

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