In Business This Week: HEADLINER: EVANDER HOLYFIELD
A HEAVYWEIGHT PAYDAY
Mike Tyson may have emerged bruised and beaten in his Nov. 9 bout with Evander Holyfield, but no one else--except Vegas bookies--felt much pain. How was the purse divided? Showtime and promoter Don King split about $45 million in pay-per-view fees, and King took home the $14 million gate and $10 million from overseas and closed-circuit rights. Cable companies got an additional $36 million for carrying the fight. King is paying Tyson $30 million, Holyfield $11 million. The bookies, however, took a bath. Vegas odds dropped to 5 to 1 from 25 to 1 before the opening bell because late bettors favored Holyfield. "Everyone I've talked to was basically plastered," says Jay Kornegay of the Imperial Palace. Rematch, anyone? King, who has promotional rights, is pushing for one in March.
In all, the fight generated some $115 million in revenues, one of the biggest takes in boxing history. Most came from the 1.6 million or so fight fans who paid up to $49.95 to see the telecast.EDITED BY THANE PETERSON By Ron GroverReturn to top
POW! PERELMAN ZAPS INVESTORS
WHY ARE INVESTORS SO MAD at Ron Perelman, the billionaire owner of 80% of Marvel Entertainment Group? To prevent Marvel from making a Chapter 11 filing, Perelman proposed investing $350 million to acquire newly issued shares at a steep discount. The stock immediately fell 41%, to less than $3. The reason, say irate investors, is that the proposed deal scalps stock-and bondholders while it enriches Perelman. It also ensures that he keeps control of Marvel. "Perelman doubles his money right away, and the shareholders go from $2.50 to $1.70 per share," gripes KDP Investment Advisors analyst Phelps Hoyt. His advice: Turn down Perelman's deal and allow Marvel to file for Chapter 11. Then, Hoyt figures, investors would stand a chance of making $4 a share.EDITED BY THANE PETERSONReturn to top
AS INTEL CRANKS OUT THE CHIPS...
TO SAY INTEL IS OPTIMISTIC about PC sales is an understatement. On Nov. 13, it announced plans to build chip plants in Fort Worth and San Jose, Costa Rica, for a total investment of $1.6 billion. The new construction comes on top of $3.1 billion in plants already under way in Israel and Ireland. Plus, Intel says it has begun to build a flash-memory assembly plant in Shanghai it announced last year. Intel recently said strong PC demand would propel its fourth-quarter revenues and profit margins "significantly" above Wall Street's expectations.EDITED BY THANE PETERSONReturn to top
... BIG BLUE HEADS FOR SCHOOL
IBM ALSO HOPES TO CAPITALIZE on strong PC sales. On Nov. 13, it bid some $80 million for Edmark, a developer of consumer and education software for the school market. Big Blue wants to broaden its line of consumer products partly because its new Aptiva home PCs are doing well. Dataquest figures IBM's share of the worldwide home-PC market hit 8.2% at midyear, up from just 5.9% two years ago. IBM says Edmark will keep that name and its Redmond (Wash.) headquarters.EDITED BY THANE PETERSONReturn to top
THIS DRUG'S PRICE IS HEART-STOPPING
YOU MIGHT WANT TO CONSIDER an alternative to aspirin if you suffer from heart disease. Results from a study released on Nov. 13 of 19,000 people--the largest trial ever of an experimental new medication--show that a new drug called clopidogrel is modestly better than aspirin in preventing strokes and heart attacks in people who already have heart disease. The problem: The drug, made by Paris-based Sanofi, is likely to cost hundreds of times more than aspirin.EDITED BY THANE PETERSONReturn to top