TCI may get investment by Microsoft

Microsoft is negotiating the possible investment of between $600 million and $1 billion in Tele-Communications (TCI), according to insiders. Neither Microsoft nor TCI would comment on the discussions, which insiders have characterized as sensitive. A cash infusion from Microsoft would finance TCI payment for a massive order of next generation of digital cable boxes that would offer high-speed Internet access. TCI, the largest US cable-TV operator, also would gain access to hundreds of digital cable channels. Microsoft, which invested $1 billion to purchase an 11.5% stake in Comcast in Jun 1997, also would increase its industry prestige. Wall Street speculates that Microsoft could purchase some shares formerly controlled by the late TCI founder Robert Magness' estate. Other reports portray deals that include TCI acquiring converting boxes using some Microsoft technology. No one knows whether Microsoft seeks to acquire an equity stake in TCI.