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Telecommunications equipment industry

General Instrument Invests $7.4 Million in Spyglass for Internet Cable Software Collaboration

Strategic Insights

— 1 min read

General Instrument, a global leader in cable television technology, has made a significant investment in Spyglass, a pioneering company in internet software, to collaborate on internet cable software for new digital set-top terminals. This strategic partnership marks a crucial step in the development of the next generation of digital cable services. The investment of $7.4 million represents approximately 5 percent of Spyglass' outstanding common shares, with an option to acquire an additional 5 percent through warrants exercisable over several years.

Key Takeaways:

  • General Instrument has purchased 700,000 shares of Spyglass' common stock for $7.4 million, approximately 5 percent of the company's outstanding common shares.
  • The deal gives General Instrument an option to acquire an additional 700,000 shares of Spyglass' common stock through the exercise of warrants at a premium to the price paid for the initial shares.
  • The two companies will establish a new, jointly owned digital software integration center to create new applications and services for the cable industry.
  • General Instrument's investment in Spyglass validates the company's business model and solutions for the cable industry.
  • General Instrument is the world's leading provider of systems and hardware to the cable industry, including headend equipment and interactive set-top terminals.
  • Spyglass provides internet expertise, software, and services for making devices work with the web, with a focus on the cable and satellite television, wireless telecommunications, consumer electronics, and office equipment markets.

Statistics:

  • General Instrument has installed over 640 digital systems in North America.
  • The company has shipped over 2.0 million digital interactive set-tops to date.
  • General Instrument's current generation digital interactive set-top, the DCT-1000/1200/2000, provides a powerful platform for delivering applications such as VOD, Internet access, e-mail, community networking, and electronic program guides.

Sources:

  • General Instrument Corporation (NYSE: GIC)
  • Spyglass (Nasdaq: SPYG)
  • PRNewswire, October 20
  • General Instrument's website (http://www.gi.com/)
  • Spyglass' website (http://www.spyglass.com/)

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