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ZDTV sold to Paul Allen's Vulcan Ventures
From ZD
As the following press release announces, Paul Allen's Vulcan Ventures is purchasing ZD's interest in ZDTV. We are very happy with the price offered for ZDTV and view this as a significant accomplishment in the process of increasing value for shareholders of Ziff-Davis. Vulcan Ventures is quite familiar with ZDTV given its investment in our cable channel earlier this year. We believe this familiarity, coupled with the continuing joint programs between ZDTV and other divisions of ZD, will provide for a smooth transition and a bright future for ZDTV and its dedicated and talented employees.
We anticipate that the transaction will be completed in 45 days, at which time more details will be available. Meanwhile, join me in congratulating all members of the team who worked on this very exciting agreement. Congratulations also to our outstanding colleagues at ZDTV who have built a tremendous cable TV business in record time and who will continue to amaze us with what they do next!
Eric Hippeau
FOR IMMEDIATE RELEASE
Contacts: Investors Media For Vulcan Ventures Robert Borchert Evan Goetz Susan Pierson-Brown Ziff-Davis Inc. Morgen-Walke Associates Vulcan Ventures, Inc. 212-503-3505 212-850-5639 425-453-1940 robert_borchert@zd.com evan@morgenwalke.com SusanP@vnw.com
ZIFF-DAVIS AGREES TO SELL ZDTV INTEREST TO VULCAN VENTURES FOR $204.8 MILLION
Completes Another Step in Strategic Alternative Process to Unlock Shareholder Value
New York, NY, November 19, 1999 -- Ziff-Davis Inc. (NYSE: ZD and ZDZ) today announced that it has signed a definitive agreement to sell its 64% interest in ZDTV to Vulcan Ventures, Inc., the investment organization of Paul G. Allen, for $204.8 million. The transaction is expected to be completed within 45 days, subject to regulatory approvals.
The agreement values the fast-growing cable network at $320 million. ZDTV is distributed in more than 14 million U.S. homes, and is expected to reach approximately 16 million U.S. homes by year-end. ZDTV is currently offered through 88 cable operators and more than 400 cable systems, as well as through both major satellite companies, DirecTV and Echo Star.
"Vulcan Ventures understood the potential of ZDTV early on, having acquired a 33% stake in the cable channel nearly nine months ago. Their early investment provided Vulcan with the opportunity to see firsthand the unique position that ZDTV now enjoys in leading the convergence of the Web and television programming," said Eric Hippeau, chairman and CEO of Ziff-Davis Inc. "This announcement is also an indication of the progress Ziff-Davis continues to make in its plan to maximize value for our shareholders."
ZDTV will continue to maintain certain business agreements with ZDNet and ZD Publishing following completion of the transaction. These beneficial relationships include agreements that cover a joint news organization, and co-development, promotional and audience development programs.
"ZDTV is a tremendous addition to Vulcan's portfolio of companies," added William Savoy, president of Vulcan Ventures, Inc. "ZDTV?s management team combines a broad base of cable programming, entertainment and Internet expertise to cover the continuing rapid convergence of technologies every day. ZDTV fits well with the portfolio of businesses that Vulcan is building."
About ZDTV ZDTV is the first 24-hour cable TV channel and integrated Web site focused exclusively on computing, technology and the Internet. ZDTV.com ( www.zdtv.com) enhances and encourages viewer interaction through e-mail, live chat and video mail. Through its 3Com Netcam Network, ZDTV?s channel and Web site have created an integrated community that appears on air and contributes to ZDTV?s programming. In addition, ZDTV radio can now be heard in both RealNetworks and Windows Media formats. Its features are also heard on 75 AM and FM U.S. radio stations and internationally on 600 stations in 140 countries through the Armed Forces Radio Network.
>From its digital, state-of-the-art studios in San Francisco, ZDTV produces 23 hours of weekly, original programming ranging from daily industry news to features on emerging technologies. ZDTV appeals to a wide range of viewers and users -- from the computer novice to the technologically advanced -- with shows including Big Thinkers, Call For Help, Computer Shopper, Fresh Gear, GameSpot TV, Internet Tonight, Silicon Spin, The Money Machine, The Screen Savers and ZDTV News.
About Ziff-Davis Inc. Ziff-Davis Inc. is a leading media and marketing company focused on computing and Internet-related technologies, with principal platforms in print publishing, trade shows and conferences, online content, television and education. Ziff-Davis provides global technology companies with marketing strategies for reaching key decision-makers. Ziff-Davis has two series of common stock, one which is intended to track the performance of its Internet business ZDNet (NYSE: ZDZ) (www.zdnet.com), and one which is intended to track the performance of the ZD Group (NYSE: ZD), which includes print publishing, trade shows and conferences, online learning and television businesses, and a retained interest in ZDNet.
About Vulcan Ventures, Inc. Vulcan Ventures, Inc. of Bellevue, Washington was founded by Paul G. Allen in 1986 to research and implement his investments. Through Vulcan Ventures, Allen invests in companies that offer products, services or technologies that fit his Wired World strategy and can contribute to or benefit from the technology and strategy of other companies within the group's extensive investment portfolio. In addition, the group owns Charter Communications, the fourth largest cable operating company in the United States with more than 6 million subscribers. Recent investments include those in innovative content (e.g. Oxygen Media, ZDTV), Internet and e-commerce (e.g. Drugstore.com, eGreetings, Go2Net, Priceline.com, Stamps.com), telecommunications (e.g. Allegiance Telecom, High Speed Access, InterNAP, NorthPoint Communications) and consumer device and service companies (e.g. Replay Networks, TiVo, and Wink Communications). William D. Savoy is president of Vulcan Ventures and represents Allen in his professional and personal financial transactions as well as manages the Vulcan investment analysts who investigate and secure investment opportunities. Allen remains chairman of Vulcan. For more information on Vulcan visit www.paulallen.com.
This release contains forward-looking statements that are subject to risks and uncertainties. Although Ziff-Davis Inc. believes that the expectations reflected in its forward-looking statements are reasonable, actual results could differ materially from those expectations. Important cautionary statements and risk factors that would affect actual results are discussed in materials filed by Ziff-Davis Inc. with the Securities and Exchange Commission, including under the caption "Risk Factors" in the Registration Statement on Form S-1, which became effective March 30, 1999, and the Form S-3, which became effective October 29, 1999. Holders of ZD Group Stock and ZDNet Stock are common stockholders of Ziff-Davis Inc. and are subject to the risks associated with an investment in Ziff-Davis Inc. and all of its businesses, assets and liabilities. Although Ziff-Davis Inc. has hired Morgan Stanley Dean Witter to explore strategic alternatives to maximize shareholder value, there can be no assurance that any transaction will result from that exploration process.
I think I've figured it out.
:- ZDTV will be a major marketing vehicle for Transmeta, featuring and advertising the product at every opportunity, in a gamble to build up the market before the release.
Look at the facts:
Paul Allen is funding Transmeta
Transmeta has just given a release date
Transmeta is promising an announcement in January
Paul Allen buys a TV station which features a lot of tech stuff
Airtime - lots of it - will be critical to Transmeta beating the ix86 in the mindshare stakes
Conclusion
That's actually an extremely good theory! I had forgotten all about Paul Allen funding Transmeta until I read this. That would be a damn good idea from a marketing standpoint, you can pimp your own product and deny companies like intel advertising on your channel. Bloody good show Paul!
Kintanon
Check out JoshJitsu.info for Brazilian Ji
"Why would *anyone* want ZDTV?" should be the question. My understanding is that it's programming is only on the air a few hours a day (usually at 2AM) in certain markets. I thought the whole thing was going to get shut down.
Also, note that unlike some ZD publications, ZDTV is not aimed at a technical audience at all. It's target audience seems to be newbies who don't know what RAM and FTP are and can't decide if their iMac should be purple or green.
(This makes it difficult to use as a propaganda engine. Sure they could tell all three viewers they have to call their congressman and advocate "The Freedom To Innovate", but certainly the prime MS customer base of MIS Manager types aren't watching this show.)
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Business. Numbers. Money. People. Computer World.
Whoa now! MSNBC constantly goes out of its way to point out MS faults. They indeed often overcompensate in their effort to be LESS biased than other, non-MS media ventures because of the affiliation. When something goes wrong in the DOJ trial, or some new MS fault is discovered, MSNBC usually has it first and are often the only major outlet to run it.
'Pointing your finger for no good reason is a good way to get it broken.' one of my elementary teachers.
Additionally, Allen has little, if nothing to do with MS these days. (Other than being a shareholder)
.sig: Now legally binding!
Perhaps you should ask Ted Turner. He owns about a billion or two cable chanels at last count, three-fourths of which are showing poorly-colorized movies as we speak.
- A.P. (Am I the only one who thinks that the early-80s "marvel" of colorization should stay forgotten? Did people all really look like fleshy pink fetuses in the 1920s?)
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"One World, one Web, one Program" - Microsoft promotional ad
"Remember when the U.S. had a drug problem, and then we declared a War On Drugs, and now you can't buy drugs anymore?"
Then he'll own the network that shows ST:Voyager and Dilbert, for starters...
Assumably then he can improve on Dilbert's ratings, since they have nowhere to go but up. For last week (November 8-14) Dilbert was the least watched primetime network show. And it was a new episode! Doesn't look like scheduling Dilbert against Buffy the Vampire Slayer is such a good idea...
On a semi-related note (well not really, but I'm gonna say it anyway), didn't I hear something about ZD being purchased by some Japanese company a few months ago? I can't seem to find anything about this... anyone have a URL with the details?
ZD only bought ZD Ed about 2 years ago. The company was previously called Logical Operations, so all ZD's local advertising actually refers to the company as "Ziff Davis Education, Formerly Logical Operations" :-)
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<SIG>
"I am not trying to prove that I am right... I am only trying to find out whether." -Bertolt Brecht
<sig>Guvf vf abg n frperg zrffntr
I like ZDTV much in the same way I like some of the more "out-there" religious programming.... you know like sc*ntology commericials, or "The Pagan Invasion"...(if anyone remembers that!)
It's funny and incredibly aggrevating at the same time.
Myddrin
It seems that Paul Allen has been buying or venturing into the Multimedia, [Tele]Communications and high technology fields lately. Could it be that he wants to find a niche to show that he is better than Bill Gates in some manner?
I agree that ZDTV isn't the best channel or property, but to some people, it's something that many wanna-be geeks want and like.
I seem to recall that Allen's been distancing himself from MS for the past few years (at least). Perhaps I'm mistaken, but off the top of my head I can't remember him doing anything to help MS recently.
...that MSNBC is about to get the ax. Apparently, it's not stealing much audience from CNN and is deep in red ink. The MSNBC website is more successful in many ways than the channel - it's certainly linked to a lot.
Perhaps this is an attept by a computer company to get control of a more relevant traditional media operation. ZDTV certainly fits Microsoft's interests (and thus Paul Allen's) better than MSNBC does.
Perhaps Paul Allen is simply setting ZDTV up to be bought by Microsoft after the anti-trust thing blows over. Certainly, it would be a public relations disaster for Microsoft to buy a TV channel now while it's in court, but control over ZDTV - directly or indirectly - makes a lot of sense for Bill Gates.
I like ZDTV much in the same way I like some of the more "out-there" religious programming.... you know like sc*ntology commericials, or "The Pagan Invasion"...(if anyone remembers that!) It's funny and incredibly aggrevating at the same time.
I know EXACTLY what you mean. You know that show on the TBN "superstation" called "Praise the Lord"? Sometimes I would watch that transfixed, unable to turn my head away as I screamed silently in my mind: "NOOOOO!! Don't you guys realise how DUMB you are????"
Example: one day the show started out with a couple ditzy co-hosts - a man and a woman. After every sentance they would look down, half close their eyes and praise His holy name (I believe the subject was the incredible beauty of the state of Oklahoma) as they kept agreeing with each other about everything. Then the fun started. They brought out a guest who had the following credential: he was a Scientist (you know, one of those smart, scary people who usually like to intimidate good, decent god fearin' folk with their fancy theories and equations and papers) who used to believe in evolution until he reasoned it out and saw the Light. Of course, I wasn't going to turn it off now! I was anxious to hear his line of reasoning that put evolution to such shame.
He didn't dissapoint. Here is a sample of his explanation (as well as I can remember it), which I swear I am neither making up nor embellishing:
Noah's Great Flood served to lower the air pressure of the Earth's atmosphere to it's present day levels. In the early days of the Old Testament, the air pressure was much higher. Since higher air pressure means more oxygen, people could live much longer back then. This accounts for the very long lives of people in those early days...
And it went on and on with a lot of stuff I forget.
ZDTV can give me exactly the same kind of perverse fascination. I'll watch their "Silicon Spin" show as John Dvorak brings on a panel of "pundits" to offer their profound insights into the future of technology. Usually these people are fairly clueless, and when they have somebody good that person usually doesn't have the time to say what they want to say. In a half hour show (about 20 mins of air time) they will tackle 4 or 5 different topics. That's enough time to briefly introduce the topic, go twice around the table for opinions, and then have Dvorak cut them off and go to a commercial break. Funny that a network that plays reruns of earlier shows constantly can't give them a little more time.
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grappler
Vidi, Vici, Veni
Look at the facts:
Conclusion :- ZDTV will be a major marketing vehicle for Transmeta, featuring and advertising the product at every opportunity, in a gamble to build up the market before the release.
It's a small world and it smells funny; I'd buy another if it wasn't for the money; Take back what I paid (SoM)