New Orbcomm owner hasn’t emerged despite earlier report that auction conducted by U.S. Bankruptcy Court in Wilmington, Del., was supposed to reveal winner by Fri. (CD Feb 27 p4). Auction opened at 10 a.m. March 2, with hearing to approve sale of assets originally scheduled for 5 p.m. Mon. in U.S. Dist. Court, Wilmington. “Things have happened but we haven’t set anything yet,” spokesman for Orbital said.
Country of origin cases
Granite Bcstg. said Mon. it had restructured reverse- compensation payment schedule with NBC in network’s switch of its affiliation for San Francisco-Oakland-San Jose market from KRON-TV San Francisco to Granite’s KNTV San Jose, effective Jan. 1. Originally, Granite was to pay NBC $61 million on date of affiliation switch. Under new deal, licensee will pay network $30.5 million upon closing of new $205 million credit facility through Goldman, Sachs & Co., expected today (Tues.). Granite is obligated to pay NBC additional $30.1 million Jan. 1, 2005. Granite also said $114 million of new funding would be used to pay off existing debt. As part of deal, NBC has granted KNTV secondary affiliation, with right of first refusal for network programming not aired by KRON-TV, Granite said. KNTV obtained future NBC affiliation after Young Bcstg. purchased KRON-TV (winning bidding war with NBC) and refused to meet network’s demands to retain affiliation (CD Feb 11/00 p8).
House Commerce Committee will introduce new bill “in next month or so” to replace last session’s HR-2420 that would give Bells more regulatory freedom for data transmission and expects easy passage in House but harder job in Senate, Ken Johnson, spokesman for Committee Chmn. Tauzin (R-La.), said Thurs. Johnson, who participated in panel discussion at Precursor Group conference in Washington, urged audience not to “mistake inaction with indecision” on part of Committee because it still was committed to basic HR-2420 concept. Bill probably will be same as last year’s version although it could change during legislative process, Johnson said. Tauzin looks at current version of bill as setting tone for discussion, he said.
Sirius Satellite said it completed offering of 11.5 million shares of common stock, raising $230 million to be used to finance operations until end of 2002. Offering topped 10 million shares originally planned to be sold. Lehman Bros. exercised its overallotment option to purchase additional 1.5 million shares.
Barry Drake resigns as CEO, Sinclair Bcst. Group TV Div… John DuBois adds board chmn. to CEO, Nx Networks, replacing Steven Francesco, resigned… Changes at Gannett: Samuel Rosenwasser, ex-KXTV, Sacramento, and John Remes, ex-KARE, Minneapolis, named senior vps, Gannett TV; Russell Postell succeeds Rosenwasser at KXTV… Scott Barton, ex-On Command, named dir.-subscription video-on-demand, Starz Encore… Robert Chalfant, ex-StoragePoint, appointed vp-sales and mktg., Standard Communications… Bradley Jansen, ex-office of Rep. Paul (R-Tex.), joins Center for Technology Policy of Free Congress Foundation… Amy Girwood promoted to vp-international human resources, Discovery Networks International… Michael Rauch advanced to exec. vp-production, Showtime Networks… Colette Fleming, ex-Morgan Stanley Dean Witter, named senior wireless telecommunications services analyst, UBS Warburg… Changes at USA Cable: Ray Giacopelli promoted to senior vp-research; Andrew Cohen, ex-CBS News, named vp-original production; Kris Slava, ex-A&E Network, appointed vp-acquisitions and scheduling for new Trio network.
House Commerce Committee adopted amended version of “2% carrier” bill (HR-496) by Rep. Cubin (R-Wyo.) Wed. and sent it to House floor. Measure seeks to reduce regulation of ILECs that control less than 2% of nation’s access lines. Committee Chmn. Tauzin (R-La.), before introduction of amendment, said deregulatory bill was “indicative of future action on telecommunications reform.” He said committee and full House last year passed similar bill, which then stalled in Senate.
Liberty Media Group and Klesch & Co. signed letter of intent Fri. to buy controlling 55% stake in 6 German cable companies owned by Deutsche Telekom for more than $2 billion. Deal, which would give Liberty Media-Klesch consortium option to boost its ownership interest to 75% later, covers 10 million cable homes spread across 13 of Germany’s 16 states. Deutsche Telekom, which has been saddled by $51 billion of debt from acquisitions and investment in new European mobile phone licenses, will retain minority stake in regional cable operations. But Liberty Media- Klesch consortium will be able to compete against Deutsche Telekom’s former monopoly phone network with cable telephony, high-speed data and interactive TV services.
As lawyers prepared for Fri. hearing in U.S. Dist. Court, San Francisco, on details of Napster injunction (CD Feb 13 p3), the music industry increased its pressure on music file-sharing companies, announcing a major new partnership to compete with Napster and warning Napster clones of their potential copyright liability.
FCC Cable Bureau Chief Deborah Lathen proposed Thurs. that Commission consider adopting period of regulatory forbearance for new cable and possibly other services. In most provocative part of FCC general meeting, Lathen suggested that agency weigh creating “some type of safe harbor” or “perhaps some type of moratorium” to allow nascent technologies and services to grow, “at least for a little while.” Citing theoretical example of young ISP that seeks to offer cable programming by streaming video over DSL lines, she urged Commission to “take a step back” and “think outside the box” before slapping regulatory classification on such new services. “Why not get rid of the box?” she asked, adding that she didn’t have more specific plan.
FCC completed auction of 8 licenses in 700 MHz guard band, raising total of $20.96 million. Pegasus Guard Band won licenses in American Samoa, Guam and Pittsburgh, and Nextel Spectrum Acquisition in Columbus, O., Hawaii, Oklahoma City. Access Spectrum, separate guard band bidding unit created by Industrial Telecom Assn., Motorola and others, won licenses in Little Rock and Omaha. Down payments are due March 8. Licenses were put up for bid after they weren’t sold in original 700 MHz guard band auction held by FCC in Sept.