The San Francisco Examiner from San Francisco, California • 57

A lection of ihe Sm FnnciKO Sunday Eaaminn id Chronicle Sunday, October 24, 1993 E-l an Jrancigco ffxammrt Is your cold stock getting hot? Find out by calling Cityline at (415) 512-5000. Enter 9000 for market info. Enter 9525 for stock quotes. 1 I i1 IS JOHN CRUDELE e-2 N.Y. STOCKS E-9 NASDAQ STOCKS 12 MUTUAL FUNDS e-m I Riergeir strikes style 111 I i a i ft A 1 I I- 3 J'ruU -I U'l' LLLl-J' rllll II fill io ik i 'i wiiiim iiwi "a i -irimtiM lftiffli i ii 1 1 1 tlr Spectrum Hsltbyta offers Iron Helix, a sci-fi game for CD EVELOPERS of video games vroooom! spflltt! kah-ZOOEY! are in mortal combat for investor' dollars.

But take care. The field is crowded. As investments, ever- 111 i Xri land maker of flight simulator games. MicroProse shareholders will have the final say later this fall. Sanctuary Woods, meanwhile, just finished raising $23 million by selling its publicly traded shares to big investors.

The Canadian company is distinguished by the fact that it beat everyone except Crystal Dynamics to the shelves with a 3DO title, the delightfully serene Shelley Duvall's It's a Bird's Life. (Crystal Dynamics' Mad-Maxian game, Crash N' Burn, is packaged in the same box as the new 3DO games player, which is the size of a videocassette recorder.) All of the up-and-comers aspire to be the next Electronic Arts, See MONEY TALKS, E-l 5 hopeful entertainment software studios could be called hyped-out media. Shares of the publicly traded names are selling at space-age multiples as much as six times their sales. The newest of the hot names, such as the Bay Area's Crystal Dynamics, Spectrum HoloByte and Sanctuary Woods Multimedia publicly owned HBO Co. and King World Productions to buy 20 percent of the company for about $20 million.

Spectrum HoloByte, which raised about $20 million this year in a private placement, looks to merge with publicly held Micro-Prose a money-losing Mary- Corp. (with 2 operations mmm -wwww-i mm iippiiiii.t.u. pilluijjjlBPpp.iHijli iiinmiMIHW tyi hv: tiiiii-iiiiitiiBtiMiiirtiiriw ii.iWi.iKii ifli THOM CALANDRA WW in San Mateo an( in Victoria, British Columbia) this year raised more than MONEY Matchups based on long-term strategic relationships By Mike Doming and Michael L. Millenson CHICAGO TRIBUNE NrEW YORK It's mating season again in corporate America. This time, the merger movement is not the 1980s frenzy of corporate courting driven by infatuation with short-term financial gratification.

Nor does it much resemble the '60s, when unrelated companies clung together to become conglomerates, in what seemed like the business world's version of marriage purely for marriage's sake. Now, analysts say, the matchups appear to be more like arranged weddings, carefully configured on the basis of long-term strategic relationships among the parties involved. Indicative of that is the concentration of activity in fields such as health care and telecommunications, whicn are on the cusp of transformational changes in regulation and technology. Especially in telecommunications, whole new businesses are being created from the joining of formerly distinct industries. So it was with the announcement last week of Bell Atlantic Corp.

planned acquisition of Tele-Communications forming a combination of cable and telephone companies poised to provide services such as interactive video networks. Deal rivals record buyout Because of the technological metamorphosis the deal portends and its sheer scale, the Bell-TCI transaction, which could exceed $31 billion in value, promises to be a signal moment of the latest merger movement. It rivals in size the record-setting 1988 buyout of RJR Nabisco by Kohlberg Kravis Roberts which inspired the book "Barbarians at the Gate." The Bell-TCI deal was done just as Wall Street became entranced by the struggle between the home-shopping network QVC and communications company Viacom to take over the major Hollywood studio and other holdings of Paramount Communications. nd already, in telecommunications, there was American Telephone Telegraph August agreement to acquire McCaw Cel- See MERGER, E-8 A host of entertainment software TALKS 1 Jf f- rt $60 million in appeals to big investors. Crystal Dynamics, the Palo Alto maker of race-car simulator Crash 'N Burn for 3DO new CD-ROM player, and Spectrum HoloByte, Alameda publisher of the classic computer game Tetris and upcoming 3DO title Star Trek: The Next Generation, are privately owned.

iut probably not for long. Crystal Dynamics, headed by former Hollywood mogul Strauss ZelnicK, this summer convinced nrms orrer opportunities to investors who are playing to win A "scene" from Crystal Dynamics' Total Eclipse, above. Victor Vector, top, and his dog Yondo from Sanctuary Woods. 7 ft id J- Breast cancer survivors sell healing products Milken sells kids on math mm i EXAMINER CRAIG LEI Robyn Adams las started a cataog and i7 open a store this week in Sausalito for suruiuors of breast cancer. The master of corporate financing and takeovers in the 1980s, the king of the junk bond market, the man who was convicted of violating federal securi Businesses in Race for Cure to launch catalogs with products designed for breast cancer survivors.

Both act as intermediaries between manufacturers and shoppers. In September, Loenneker began distributing Feminine Image catalog from her Sunnyvale home. The catalog features lingerie, breast forms and other products for women who have had a mastectomy. Adams is starting Sausalito-based Healing Touches, a catalog featuring books, cosmetics, turbans, clothing and resources for information about breast cancer. Adams is also opening a Healing Touches store in Sausalito this week.

"I wanted to get as much information as I could about my cancer and the healing process," Adams said. "I started looking for things I could use to make me feel more in control about my situation. "It was a very laborious process. There weren't things readily avail-t See CATALOGS, E-7 Turbans, lingerie among the goods offered in catalogs from 2 area women By Sheryl Oring SPECIAL TO THE EXAMINER SAUSALITO LINDA Loenneker was mad. Not only did she have to deal with the aftermath of breast cancer and the mastectomy it led to, the only place she could find the things she needed to cope with daily life was a medical supply store.

Four years ago Robyn Adams was diagnosed with breast cancer. As she struggled to understand and come to terms with the disease, Adams had to look far and wide to find the information and products she needed. Such were the circumstances that led these two Bay Area women ties laws and was released from a federal prison in Pleasanton last March after serving two years of his 10-year sentence now spends his recalled Esta Swig, race chairwoman. How quickly things have changed. Last year the San Francisco chapter of one of the nation's largest private funders of breast cancer research collected $142,519 in corporate contributions.

And last week as organizers finalized preparations for Sunday's race, the list of donor comprised a veritable who's who of Bay Area businesses; WHEN EXECUTIVES from the Susan G. Ko-mn Breast Cancer Foundation went looking for corporate sponsors for the first Race for the Cure event in San Francisco in 1991, they found many executives uneasy about discussing the subject, never mind getting them to hand over cash, "The first year we did this vsr-a smiioninu in their seats," Pacific Bell, Levi Strauss, Autodesk, Genentech, Kaiser Permanent, Bank of America, Charles Schwab, Safeway, Pacific Gas Electric, Ross Stores, Transameri-ca, Nellcor and many more. "It's really changed now," Swig said. "With people getting educated about the issue, people are more receptive to the issue. It's becoming something that's more accept-SeeRACE, E-6 Michael Milken days performing community service as the administrator of an after-school program fr under? privileged children.

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