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More Primestar-Justice Discussions
WASHINGTON--Lawyers representing News Corp. and Tele-Communications
Inc. met Monday with Justice Department attorneys, including
Antitrust Division Chief Joel Klein, to discuss the government's
lawsuit against Primestar, sources familiar with the meeting
said. News Corp. hopes to become a Primestar partner, while TCI
Satellite Entertainment, a TCI spin-off, already is. According
to the sources, the companies' lawyers reiterated their hopes
they can reach a financial arrangement to buy out the cable companies'
Primestar equity, the issue at the heart of Justice's lawsuit.
There was some indication Klein reacted favorably, the sources
said, though how specific the corporate lawyers were on possible
buyout proposals was not immediately clear. News Corp.'s participation
in the meeting was viewed as significant, sources said, since
the company and TCI's Liberty Media recently agreed to share
control of an expanded United Video Satellite Group. That, the
sources said, could suggest the companies are exploring the UVSG
avenue to finance Primestar's buyout of the cable firms. Another
buyout proposal that has been talked about for several weeks
may come from General Electric's capital arm, though that offer
does not appear to have come together. Primestar Chairman Carl
Vogel said he remains optimistic he can raise buyout funds from
public markets or private companies, but he would not comment
on specific proposals or discussions.
Schroeder: NPS Has Thoughts
on Handling Home Viewer Act
Mike Schroeder, president of National Programming Service, said
yesterday satellite dealers should be aware of what the Satellite
Home Viewer Act "is doing to [them] in the market place"
and it is--something we have to deal with." Schroeder noted
that the PrimeTime 24 case has "not been decided yet"
but added NPS will start employing Longley-Rice signal propagation
maps based on nine-digit zip codes to try to comply with the
recent Miami court injunction ordering PrimeTime 24 distributors
to turn off service to some dish owners. The mapping system will
incorporate 66 million individual zip codes into a database that
can be accessed to see what households are eligible to receive
networks via satellite. NPS hopes to have the program running
"in the next week or so," he said. Schroeder also urged
satellite dealers to contact Congress and local broadcasters
regarding the situation but stressed Congress should not be blamed
for the current situation, rather the National Association of
Broadcasters should be blamed, because the NAB has pushed for
the restrictions.
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