Qwest and Chairman Phil Anschutz, acting on his own behalf, created Qwest Digital Media as a joint venture in 1999 to sell video production and transmission services to broadcasters and others. It was a better deal for Anschutz than for Qwest.
Anschutz acquires a TV production company naming it Slingshot--paying $85 million, according to Qwest (Q).
Qwest agrees to pay $85 million over nine years for 50% of the equity in Qwest Digital Media, while Anschutz gets the other 50% for contributing Slingshot. Separately, Qwest pays Anschutz $34 million for Precision Systems, which Qwest later sells at a loss.
Qwest pays Anschutz $48 million for an additional 25% of QDM--but Anschutz retains 50% voting interest.
Qwest stops putting new cash into QDM and writes off $18 million of the venture's value, on top of a $15 million charge earlier in the year.
Qwest pays Anschutz businesses $5.1 million in rent, insurance services, and other fees during the year.
Qwest closes QDM and begins selling off its assets.
Qwest discloses the QDM closing and write-downs in 10-K filing.
Qwest loses $83 million on QDM, Anschutz loses $48 million.
Data: Company reports