Microsoft and Liberty Media Take Stake in Austar United Communications Ltd

Strategic Insights -

Microsoft Corp and Liberty Media Corp of the US are set to take a significant stake in Austar United Communications Ltd, the parent company of local regional pay television operator Austar. Liberty will purchase 4.93 million United shares for $US493 million, with 50% of its interest in United being assigned to Microsoft. The joint venture will explore content and distribution opportunities in Europe through United's European subsidiary, UPC.

Key Takeaways:

  • Microsoft and Liberty Media will take a significant stake in Austar United Communications Ltd, with Liberty purchasing 4.93 million United shares for $US493 million.
  • Liberty will assign 50% of its interest in United to Microsoft, as part of a joint venture to explore European opportunities.
  • Austar United Communications Ltd has established a separate broadband company, Austar United Broadband Pty Ltd, to rollout Internet and interactive television services in Australia and New Zealand.
  • The joint venture with UPC will focus on evaluating content and distribution opportunities in Europe.
  • Austar United Broadband Pty Ltd aims to launch full-scale services in early 2000.
  • Austar chief executive officer John Porter believes the joint venture with UPC will be a major factor in the success of Austar United's broadband play.

Statistics:

  • Liberty will purchase 4.93 million United shares for $US493 million.
  • The deal is worth $A759 million.
  • Austar United Communications Ltd expects to begin the rollout of Internet and interactive television services in the fourth quarter of 1999.
  • The joint venture with UPC will aim to explore European opportunities.
  • Austar United Broadband Pty Ltd has established a broadband company to rollout services in Australia and New Zealand.

Sources:

  • Asia Pulse (C) 1999 Asia Pulse Pte Ltd News Provided by COMTEX (http://www.comtexnews.com)