Telecommunications and Biotechnology Deals Worth Billions

Strategic Insights -

Lucent Technologies and SBC Communications Inc. have signed a major deal worth $2.4 billion for state-of-the-art switching equipment, marking a significant expansion of Lucent's digital switching software and hardware. The deal will enable SBC to offer a broader range of services to its customers across seven states. In a separate development, Novartis AG is investing $600 million in a California research center to develop genetically improved crops. This move highlights Novartis's commitment to biotechnology as a key growth area.

Key Takeaways:

  • Lucent's five-year deal with SBC Communications Inc. has a potential value of $2.4 billion and will allow SBC to expand its network capacity and offer more services to customers.
  • Novartis AG is investing $600 million in a California research center to develop genetically improved crops, a move that reflects the company's strategic focus on biotechnology.
  • The Novartis Agricultural Discovery Institute will be based in San Diego and will employ 180 researchers who will work on identifying and developing genes that can protect crops against disease and insects or improve nutritional composition.
  • The new research center is part of Novartis's efforts to compete in the emerging market for genetically improved crops, an area where its rivals, such as Monsanto Co. and DuPont Co., have made significant inroads.
  • Hearst-Argyle Television Inc. has started trading on the New York Stock Exchange, with its stock symbol being HTV, following the company's acquisition of Pulitzer Publishing Co.'s broadcast properties for $1.85 billion.

Statistics:

  • The value of the Lucent-SBC Communications Inc. deal is $2.4 billion over five years.
  • Novartis AG is investing $600 million in the California research center over a period of 10 years.
  • The Novartis Agricultural Discovery Institute will employ 180 researchers in San Diego.
  • The deal between Novartis and the research center will last for a decade.
  • The market value of Hearst-Argyle's acquisition of Pulitzer Publishing Co.'s broadcast properties is $1.85 billion.
  • MCI Communications Corp. and Pacific Bell have won a $929 million, 10-year contract to supply voice, data, and other telecommunications services to California government employees.

Sources:

  • Lucent Technologies
  • SBC Communications Inc.
  • Novartis AG
  • Hearst-Argyle Television Inc.
  • Pulitzer Publishing Co.
  • MCI Communications Corp.
  • Pacific Bell
  • Ferrellgas Cos.
  • Morgan Stanley Dean Witter & Co.