Magazine

Table: Digital Dealings at Qwest


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.

MARCH 1999

Anschutz acquires a TV production company naming it Slingshot--paying $85 million, according to Qwest (Q).

SEPT. 1999

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.

JUNE 2000

Qwest pays Anschutz $48 million for an additional 25% of QDM--but Anschutz retains 50% voting interest.

DEC. 2001

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.

2001

Qwest pays Anschutz businesses $5.1 million in rent, insurance services, and other fees during the year.

FEB. 2002

Qwest closes QDM and begins selling off its assets.

APR. 2002

Qwest discloses the QDM closing and write-downs in 10-K filing.

FINAL TALLY

Qwest loses $83 million on QDM, Anschutz loses $48 million.

Data: Company reports


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