final re TCI/BA

[David Farber <farber@central.cis.upenn.edu>]

Andrew is a successful venture player in San Fran


Date: 15 Oct 1993 09:49:24 -0800
From: "Anker, Andrew" <anker@spcom.com>
Subject: RE: TCI/Bell Atlantic




I definitely agree with you on the subject of McCaw, I differ on Malone.


If you look at the structure of the transaction, they're just slamming the
companies together, converting TCI stock into Bell Atlantic class B stock, no
dividend, essentially just another cable stock.  This was not a purchase by Bell
Atlantic.  This was Malone getting access to more capital and at the same time
acquiring some telephone subscribers.


I'm going out on a limb on this, but given the amount of capital the combined
entity is going to need to spend to get TCI's plant anywhere near able to do all
the whiz bang stuff everyone seems to think people want, I'm betting that in 5
years when the Bell Atlantic Class B (i.e., TCI) stock converts to Class A, Bell
Atlantic's capital structure and dividend payout, etc. will look alot more like
the cable companies do today than like the telephone companies.


And John Malone will be Chairman and CEO.


-aa
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