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TCI to Get 10% Stake in General Instrument

July 01, 1998|Bloomberg News

General Instrument Corp., a leading maker of channel selectors for cable television, said it will buy Tele-Communications Inc.'s channel security business in exchange for a 10% stake in General Instrument valued at $575.1 million. The companies first announced the transaction in December without providing terms. The TCI business provides the key security functions that allow the selectors, known as set-top boxes, to receive premium and pay-per-view channel signals from Tele-Communications in the United States. The licensing of software rights from TCI would let General Instrument develop similar channel security businesses outside the U.S. The transaction is subject to antitrust review and is expected to close during the third quarter, the companies said. Shares of Horsham, Pa.-based General Instrument rose 31 cents to close at $27.19 in trading on the NYSE. Englewood, Colo.-based Tele-Communications declined 16 cents to $38.44 on Nasdaq.

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