MERGERS
AT&T Holds Talks With AOL To Merge Cable-TV Businesses (WSJ)
AOL Is Allowed to Propose Takeover Of Amazon Under Terms of SEC Deal
(WSJ)
DIGITAL DIVIDE
High Tech in Africa: Geeks Needed (BG)
McDonald's: Burgers, fries and mice (ZDNet)
KIDS & MEDIA
Survey Shows Few Parents Use TV V-Chip to Limit Children's Viewing
Lawmakers Spur ICANN On '.Kids' (WP)
RADIO
XM Satellite Radio Lays Out Plans for Launch (WP)
MERGERS
AT&T HOLDS TALKS WITH AOL TO MERGE CABLE-TV BUSINESSES
Issue: Merger
According to sources, AT&T Corp. and AOL Time Warner began talks about a
deal to merge their cable businesses in the wake of AT&T's rejection of
Comcast's $40-billion bid last week. Sources warn that the negotiations may
never materialize into a deal, and that AT&T has entertained discussions
with other media and cable-TV companies in its search for a worthy suitor,
and AOL has not yet become the favorite. Apparently, AT&T and AOL have
considered a deal where AT&T Broadband would spin off from AT&T and merge
with AOL's Time Warner Cable. To avoid taxes on the transaction, AT&T
shareholders would own over 50% of the newly combined company, and AOL would
own about 45% and possibly maintain operating control of the firm. A
transaction merging the number 1 and number 2 largest cable companies, AOL
and AT&T respectively, would attract close observation from antitrust
regulators and may be prevented by the U.S. government to prevent AOL from
growing any larger, some observers think.
[SOURCE: The Wall Street Journal, AUTHOR: Deborah Solomon, Nikhil Deogun And
Martin Peers]
(http://interactive.wsj.com/articles/SB996016662195273790.htm)
AOL IS ALLOWED TO PROPOSE TAKEOVER OF AMAZON UNDER TERMS OF SEC DEAL
Issue: Merger
On Monday, Amazon said it sold $100 million of its shares to America Online
as part of a broad strategic alliance. Under the five-year agreement, Amazon
will provide technology such as product comparisons and search capabilities
to America Online users. In turn, Amazon will promote America Online
exclusively as an Internet-services provider. The investment agreement,
filed with the Securities and Exchange Commission, allows America Online to
propose purchasing the Internet retailer.
[SOURCE: New York Times, AUTHOR: Staff Reporter]
(http://interactive.wsj.com/articles/SB996020523500254887.htm)
See Also:
AOL, UNIVERSAL EXPAND MARKETING ALLIANCE
[SOURCE: Washington Post, AUTHOR: Reuters Wire]
(http://www.washtech.com/news/media/11374-1.html)
DIGITAL DIVIDE
HIGH TECH IN AFRICA: GEEKS NEEDED
Issue: Digital Divide International
In Kenyatta University in Nairobi, Kenya, African students are doing what
they can with the computers they have, applying an old African tradition to
piecing together computer parts from sluggish computers over five years old.
Notwithstanding severely limited and slow Internet access, a million
Africans have made their way online, and computer networks are growing
increasingly advanced. Within five years, Africa will have a high-speed
Internet backbone plugging into the global information infrastructure. To
take advantage of the future rise in bandwidth capability of the continent,
Africa is slowly regaining the brain power of high-technology engineers,
computer scientists and technicians born in Africa and educated in America.
''The enthusiasm is there. The brains are there. It's just that they lack
people to guide them,'' said MIT student and Kenyan Paul Njoroge, who
returned to his native country last year to teach computer programming where
he first went to college. Njoroge may work for a few years in America to
improve his skills after he finishes his PhD in electrical engineering at
MIT, where he is now, but is planning to return to Kenya. ''I think that
people like me who have... seen how successful societies are run can bring
that back home,'' Njoroge said.
[SOURCE: The Boston Globe, AUTHOR: Hiawatha Bray]
(http://boston.com/dailyglobe2/205/nation/Dearth_of_talent_frustrates_fledgl
ing_Internet_efforts%2b.shtml)
MCDONALD'S: BURGERS, FRIES AND MICE
Issue: International
The newest branch of McDonald's in Israel opened on Sunday as the fast food
chain's first cyber-outlet in the world. The Tel Aviv branch is stocked
with over 20 personal computers that customers can use to access the
Internet at $2.00 for 20 minutes online - while enjoying their kosher
burgers and milkshakes. The cyber-restaurant also has oversized computer
screens that advertise events and Web sites, and sells Microsoft software at
the counter. Young children can play computer games for free at special
stations. The cyber-site was developed in conjunction with MSN Israel.
According to a Nielsen/Net Ratings study released last month, Israelis use
the Internet almost as much as Americans and more than Europeans in 14
countries, spending an average of nearly 8-1/2 hours a month online. Omri
Padan, CEO of McDonald's Israel, said that the cyber-restaurant "reflects
the lifestyle of youngsters in Israel and in the world -- to eat fast food
and use the Internet at the same time."
[SOURCE: ZDNet, AUTHOR: Reuters]
(http://www.zdnet.com/ecommerce/stories/main/0,10475,2795470,00.html)
KIDS & MEDIA
SURVEY SHOWS FEW PARENTS USE TV V-CHIP TO LIMIT CHILDREN'S VIEWING
Issue: Television
In February 1996, Congress passed a law requiring that new television sets
include a device that would allow parents to block programs they considered
inappropriate for their children. About 40 percent of American families are
estimated to have at least one television with the device, known as a
V-chip. The Henry J. Kaiser Family Foundation, a public health group that
monitors the news media, released a report showing that V-chip usage was
fairly low, concluding that only about 7 percent of all parents were using
the V-chip nationally. The Kaiser Family Foundation and advocates for the
chip said the low usage could be attributed to a lack of public education.
[SOURCE: New York Times, AUTHOR: Jim Rutenberg]
(http://www.nytimes.com/2001/07/25/arts/television/25CHIP.html)
LAWMAKERS SPUT ICANN ON '.KIDS'
Issue: Internet
Rep. Edward Markey (D-Mass) told reporters yesterday that had ICANN been
more sensitive to the public's wishes there would have been no need for the
"Dot Kids Domain Name Act of 2001" - a bill that would impel ICANN to create
a .kids top-level domain. "They (ICANN) had their opportunity. They failed
and I'm not willing to wait on them any longer," added Rep. John Shimkus,
R-Ill., who is co-sponsoring the bill with Markey. While ICANN manages the
global domain name system (DNS), it does so as a contractor to the U.S.
Government, which retains the ability to approve major ICANN decisions.
ICANN had considered a .kids domain but found the idea problematic. Shimkus
and Markey believe ICANN was cavalier in killing the idea and believe that
.kids can become an Internet "playground" where parents could allow their
kids to surf without having to worry about them coming into contact with
inappropriate content. While the legislation would additionally create an
independent oversight board for the domain, advocates say that the creation
of .kids avoids the free speech concerns accompanying a ".sex" domain.
[SOURCE: Washington Post, AUTHOR: David McGuire, Newsbytes]
(http://www.washtech.com/news/regulation/11383-1.html)
RADIO
XM SATELLITE RADIO LAYS OUT PLANS FOR LAUNCH
Issue: Radio
XM Satellite Radio yesterday laid out the most detailed plans to date of its
September commercial launch. XM is one of two companies - the other Sirius
Radio - that will offer personalized digital radio at about $10 month by
satellite. Both of these companies face a major hurdle however - convincing
customers to pay for what they can get for free. XM's strategy is to create
radio stations that are very different from commercial radio - and very
different from each other. Each of XM's stations will have a distinct sound.
Lee Abrams, vice-president of programming at XM, said channels aimed at
young people will be "as relaxed as the food court at your local shopping
mall on Saturday afternoon. This is [attention deficit disorder] radio." On
stations aimed at more sophisticated older listeners the tone will be more
restrained. "No games or contests here. This is intelligent, cerebral
radio," Abrams said.
[SOURCE: Washington Post, AUTHOR: Neil Irwin]
(http://www.washtech.com/news/software/11390-1.html)
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