NOTEBOOK

Television Digest with Consumer Electronics, Dec 20, 1999

Time Warner said it established $500 million fund to invest in digital media. Time Warner Digital Media CEO Richard Bressler said company already has successful investments in firms such as Bolt Inc., Fortune City, Intervu, OpenTV, Replay Networks and WebMD and "there are increasing opportunities to enhance and complement" its existing digital media businesses through "strategic equity investments." Fund will focus on noncontrolling equity stakes, it said, in companies involved in e-commerce, interactive content, technology, infrastructure. Average investment is expected to be $5-$20 million. ------

Arianespace is to fly "largest communications satellite ever launched" for Hughes Space & Communications and PanAmSat Dec. 21 aboard Ariane 44L. Galaxy 11 is first of 7 new satellites Hughes is building for PanAmSat to provide video distribution, telephony and data services to N. America and Brazil from 99E W before being moved to final location at 91E W. Six remaining spacecraft are scheduled for launch by mid-2001. Plan includes: (1) Galaxy cable neighborhood expansion involves flying Galaxy 11, 10R and 4R as well as moving Galaxy 6, 7 and 9 to new locations. If all goes as planned, PanAmSat's Galaxy cable neighborhood by late next year will consist of 5 birds in 5 orbital locations and permanent in- orbit spare. (2) Another 4 launches will create "largest geostationary satellite system in the world" with 25 spacecraft, company said. ------

Sinclair Bcst. said it closed on sale of 41 radio stations to Entercom Communications for $700.4 million cash. Still pending is Sinclair sale to Entercom of 4 stations in Kansas City, where buyer must spin off 3 other stations to meet regulatory requirements, and WKRF(FM) Wilkes-Barre, which Entercom will operate under time brokerage agreement until sale closes. Entercom is paying $124.1 million for Wilkes-Barre and Kansas City stations. ------

Viacom filed SEC registration for planned spinoff of its Blockbuster unit. Filing indicates that spinoff would occur if Blockbuster stock price exceeds $20 per share and if Viacom receives favorable tax ruling from IRS. ------

Internet is good option for cross-promoting TV because viewers are making jump from TV to Internet, CTAM said in survey. Survey found 53% of Internet customers go on line at least weekly, and 31% daily. Nearly 1/3 have visited Web site promoted on TV, it said -- www.ctam.com.