General Instrument to Purchase 5 Percent of Spyglass®Worldwide Leader in Cable Television Technology Makes Initial $7.4 Million Investment with an Option to Acquire an Additional 5 Percent Through Warrants
Companies to Collaborate on Internet Cable Software for new Digital Set-top Terminals
Horsham, Pa. and Naperville, Ill. - Wednesday, October 21, 1998 - General Instrument (NYSE: GIC) and Spyglass (NASDAQ: SPYG) announced today that General Instrument has purchased 700,000 shares of Spyglass' common stock for $7.4 million, representing approximately 5 percent of the company's outstanding common shares. In addition, General Instrument has an option to acquire another 700,000 shares of Spyglass' common stock through the exercise of warrants at a premium to the price paid by General Instrument for the 700,000 shares purchased. The warrants are exercisable over the next several years.
General Instrument is the world's leading provider of systems and hardware, including headend equipment and interactive set-top terminals to the cable industry. This transaction is the latest indication of the strategic value General Instrument and the cable industry places on the software that will enable the next generation of digital cable services. In a related move, the two companies also announced plans to establish a new, jointly owned digital software integration center that will serve as a source for the creation of new applications and services for the cable industry.
"The establishment of the digital software integration center by Spyglass and General Instrument creates significant opportunities," said Richard C. Smith, executive vice president of General Instrument. "Our investment in Spyglass further strengthens the relationship between the two companies."
According to Spyglass President and CEO, Douglas Colbeth, General Instrument's equity investment in Spyglass further validates the Spyglass business model of providing very strategic solutions to the world's leading companies.
"We are extremely pleased to have General Instrument as a strategic partner and shareholder in Spyglass," said Colbeth. "We're delighted that our solutions focus is consistent with their desire to deliver state of the art products and services to their customers."
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