The Miami Herald from Miami, Florida • 127

FRIDAY NOVEMBER 17 1995 THE HERALD 3C CBS needs money vision to succeed GameTek reports $84M loss NATIONAL Time Warner boots exec 2 magazine editors named Heraid Staff Report GameTek Inc a computer came developer based in Aventura reported an $84 million net loss and an 80 percent drop in sales for the three-month period ended July 31 increasing number of software titles competing for shelf space and the lack of strong product offerings by the company resulted in decreased sales and increased returns and allowances in fiscal 1995 In combination with writeoffs taken by the company as a result of its recent review of pending development projects these factors had a devastating impact on the company's operating said James Harris who replaced Bruce Lowry last week as Game-Tek's chairman and chief executive officer are taking every possible step to return the company to profitability as quickly as Avatar Holdings Higher real estate expenses led to wider third-quarter losses at Avatar Holdings in Miami despite an increase in revenues the company said Revenues rose 29 percent to $25 million on the strength of housing and vacation timeshare sales Avatar said Expenses rose in part because of start-up costs at company projects Avatai is developing Harbor Islands in Hollywood Atlantic Gulf Communities Atlantic Gulf Communities in Miami said losses narrowed in the third quarter while revenues rose The third-quarter loss of $47 million includes a I million charge from a restructuring announced in July the company said Atlantic Gulf is developing communities in southwest Broward as well as Tampa Orlando and Jacksonville The company owns 60000 acres of land in other parts of Florida and Tennessee Sunglass Hut International Sunglass Hut International increased sales and earnings in the third quarter thanks to hot and sunny weather catalog mailings and the acquisition of Sunsations a competing 350-store chain that Miami-based Sunglass Hut bought in June Sales at Sunglass Hut stores open at least a year increased 148 percent in the third quarter compared to the same period last year CBS FROM 1C agree Its strengths include a powerful brand name plenty of talented people particularly at CBS News and a new entertainment chief Leslie Moonves who is idely admired in Hollywood more television is a cyclical business the key is patience It will take a few years for us to become competitive says Moonves who became top programmer in June get a couple of hits? To succeed though CBS needs a couple of things that have been absent since Tisch took command in 1986: money and vision approach to the network business was consistent He hated to spend money except on occasion buying the rights to major league baseball and hiring David Letterman away from NBC were exceptions to his rule More often he cut costs While other companies expanded he sold off such businesses as publishing and records He refused to invest in cable or new technologies He pay top dollar to buy powerful local stations And he cut CBS News once the crown jewel to the point where it compete with ABC and NBC has been mired Comparing Tisch to such industry leaders as Ted Turner Rupert Murdoch and Tom Murphy of Capital CitiesABC Hewitt said: moving and thinking and CBS has been mired nowhere worrying about the price of the stock instead of how many people are watching the 4 Tisch and other top CBS executives would not comment for this story Many decisions fueled the decline but the biggest was probably Tisch allowing Fox and Murdoch to outbid him in 1993 for National Football League games ending a 35-year CBS tradition Tisch be held responsible for all gone sour however prime-time lineup collapsed because the Hollywood programmers fell victim to short-term thinking poor guesswork and bad luck They kept CBS atop the ratings for three seasons in the early 1990s with an aging lineup and special events like the Winter Olympics But they failed ter develop new hits Now CBS is paying the price From Tuesday through Friday nights CBS is sinking occasionally registering puny PBS-sized ratings a problem because the best way to create new hits is to schedule them behind successes slide has even damaged Letterman whose first two seasons at CBS were an unqualified success This fall Letterman has fallen behind Jay Leno and Nightline on ABC in the Nielsens As for the flagship Evening News the program itself has improved even rivals admit since executive producer Andrew Heyward gave it a newsier edge CBS has a solid core of top correspondents style an issue From Herald Staff and Wire Reports And Bloomberg Business News Michael Fuchs the HBO chairman whose star seemed to bt rising at Time Warner Inc when he was given the added job of running Warner Miisic is leaving the largest media-entertainment company in a management shakeup Time Warner disclosed departure Thursday as it placed its longtime Warner Bros bosses Robert Daly and Terry Semel in charge of both its studio and music businesses Daly and Semel the Warner Bros co-chairmen and cochief executives will retain those titles in both businesses The combined businesses generated about $9 billion of the parent $159 billion in revenue last year spokesman Richard Plepler said his boss had been fired Time Warner chairman and chief executive Gerald Levin said he use that but conceded that Fuchs been offered any new role in the redesigned entertainment management structure lend itself to Levin said Fuchs is being replaced as chairman of HBO by Jeff Bewkes who has been president and chief executive of the unit loved this company for the nearly 20 years been Fuchs said in a statement particularly disappointed not to have been able to finish my tasks at Warner Music Group and I am deeply saddened to leave Time In other news Time Inc named new managing editors at its Time and Sports Illustrated magazines and said it will disband a management group that oversaw regional and special interest magazines and TV projects The new managing editor of Time is Walter Isaacson 43 who had been editor for new media at Time Inc since 1993 He succeeds Jim Gaines who has been named corporate editor of Time Inc the publishing division of Time Warner Inc (The new managing editor of Sports Illustrated islBill Colson 45 a Miami native who has been assistant managing editor at the magazine since 1991 He succeeds Mark Mulvoy who is becoming the editor of Sports Illustrated The Time Inc Ventures management unit that isbeing disbanded employs of and support staff in Los Angeles the company said The magazines and TV projects it oversaw will now report to executives in New Yprk where the other magazines are based Michelin to expand in SC Michelin North America said Thursday that it will invest at least $500 million to expand its South Carolina tire-making plants and create as many as 1 600 new jobs As part of the expansion the French company will begin making offroad tires in the United States for sport-utility vehicles Gov David Beasley said the eventual investment could reach a $900 million a record for the state South Florida stars in new show Sunbeam production will be news magazine a The set will have a trendy Deco design that will probably say South Beach to people he said But the computerized version of Deco Drive draws elements from not only South Beach but also Deco districts in New York and Los Angeles think do a fair amount of things from South Beach but I think there will be the accusation: just doing things in your own South Beach is still one of the hottest places on the planet" said Cheatwood show going to be beholden to he said going to be a little catty a little edgy We intend to kiss up to the Deco Drive will be produced in a studio right next door to Newsplex the brash two-story news complex where reporters bring viewers reports direct from the newsroom floor Channel 7 anchors Kelley Mitchell and Jessica Aguirre will anchor the new program About 10 other WSVN employees will be shifted to Deco Drive and Sunbeam plans to hire about 25 others the most ambitious show produced at WSVN since Inside Report a tabloid-style news magazine that was nationally cated in the early 1990s done Deco Drive in Los Angeles or New York it would be a a year Cheatwood said because we have a TV station with a studio be absorbing some of the cost cost of living and working here is also less so be considerable cost-savings doing the show in South Although Sunbeam Productions was formed only last summer it already has two shows under way The other Real Life is a one-hour daytime magazine show aimed at women that will be produced in Boston for NBC affiliates DECO DRIVE FROM 1C also the talk show glut People are saying enough is enough: All the talk shows are alike and the topics are Cheatwood added Those riding along Deco Drive will find a street inhabited by stars and but also one where reporters will take an look at lifestyles and trends One early segment for example will focus on the use of lesbian images in mainstream advertising Chca-twood said talking about images like the two blond models embracing in Guess jeans ads one of the hottest trends in advertising right said Cheatwood The show also will feature gossip columnists from around the country fashion and national reports it will certainly have a South Florida look and feel to Cheatwood said But Dan critics say CBS win with him as the anchor even though acknowledged to be a great reporter a tireless worker and a CBS News loyalist The problem is that his edgy hardhitting style discomfits many viewers Eric Ober the president of CBS News expressed support for Rather and confidence that CBS News can be rejuvenated But he admits that CBS News is outspent by rivals when it comes to news-gathering If Westinghouse opens its wallet CBS News could pursue big-name talent from its competitors He name names but others say CBS could try to bring back Diane Sawyeror pursue Bryant Gumbel or Christiane Amanpour Pittsburgh-based Westinghouse is to pay $81 a share for the network and its television and radio stations in an acquisition that still must be cleared by the Federal Communications Commission About 51 million shares or 79 percent of shares outstanding were voted in favor of the transaction which was announced Aug 1 Analysts also say that the new owners should have money to invest in CBS will have the capital said Jessica Reif a media analyst for Merrill Lunch never been short of money just been too cheap to spend Cruise lines eying Europe mEMmm Etc Northwest board of directors on Thursday approved an anti-takeover defense opposed by its once cozy partner KLM Royal Dutch Airlines and went on the offensive to fight a lawsuit filed by KLM three members of board cast the lone dissenting votes tb the poison pill which would limit any stake to 1 9 percent and make an unwanted takeover effort too expensive Stride Rite Corp said Thursday that it will eliminate about 600 jobs or 1 6 percent of its work force by closing a Missouri plant and several retail stores EARNINGS Kmart posts $69M loss 'Kmart Corp battered in recent weeks by bankruptcy rumors and weak investor confidence Thursday reported it lost $69 million in the third quarter The loss which translates to 1 5 cents a share compares with a 1 994 third-quarter piiifit of $39 million or 8 cents a share Before the effect of $48 million in gains from the sale of The Sports Authority its losses from continuing operations totaled 1 1 8 million or 26 cents a share compared with a profit of $2 1 million or 4 cents a share in the year-ago period Kxnart said its earnings were hit by the costs of liquidating closed stores cut-rate sales of discontinued inventory and weak performances at its Canadian operations and Builders Square unit CRUISE LINES FROM 1C Caribbean declined to comment on the talks consolidation going on in the cruise industry since 1982 we have looked at an acquisition or other form of cooperation with virtually every other cruise Fain said it ever got to the point where there were enough discussions where we felt we should disclose that we would do so A spokeswoman for Costa Cruise Lines in Miami also declined to comment The Costa family which controls Costa Crociere has expressed no desire to sell the cruise line Carnival Corp spokesman Tim Gallagher declined to comment on the talks with Costa but said: have made it very clear that we have an interest in entering the European Gallagher noted the wide regional variations in customs foods and language are a hindrance to mass-market cruising in Europe part of the reason that looked for a he said recognize that we know very little about the European THE STOCK MARKET Dow nears 5000 mark I 7 U-t I xy ICflCC The man who can drive any car in the world chooses to drive a BMW You can see it in ColdenEye opening November 17 And for a BMW of your own you can see the full line x9mo: at your dealer Right now they even have special leases on the remarkable BMW yjPTK 1995 bmw 3i8i 31gL oacecj with options Except of course for the sidewinder missies and silver champagne cooler the ultimate driving machine' Investors pushed up the Dow Jones average to thin 3 1 points of 5000 Thursday in a stock-ying spree that ignored the ancial paralysis and new evidence of weakness the US economy The best-known barometer on Wall Street shot 4661 points to 496936 59th record close the year That came atop a 5094-point surge Wednesday to 492275 its first-ever close jve 4900 Other market indicators also vanced Thursday Brokers said the strength in the index of 30 -name stocks like Disney and VI reflected the profound appetite for US cks that has been carrying the market to a ies of record highs throughout 1 995 The Standard 500 Index also rallied i second straight record The index which repents almost 75 percent of the overall (italization rose 338 or 06 percent to 734 The Nasdaq Composite Index which itains benchmark tech companies Microsoft rp and Intel Corp among others climbed 3 to 104448 Braman Motors 2020 Biscayne Boulevard 571-1220 South Motors BMW 16165 Dixie Highway 238-0900 AMEX BONDS YU Grrrmd KM1 10291 SSJIS film 'i'i' CORPORATION BONOS Grtvftnd am In An AdvMo 702 cv65 -VO HudGn fill cvlOm1'O sjSJnll jimi AHMdn7VHI 9381 KeiievOG 800 cv65 Iff 73 Jiff AuOvxAMI CV6S MacNS 704 evil! Aurora 701 cv 1 MaMm 1799 119 101 ft tIHILJM? CJIFn 7001 cv87 Maxam 14t00 13A 103 VO 'lit ChctFulbM Cv97 Medio 7406 cvU 12 92 MidRlv(B cv86 Trume 14680 FrullL7sll 7791 MorSlar 1701 49 -2 GrOar 120113992 1 PacGUf 801 9192 -2 wtaSU JSS0' tS GrOane 140042890 -1 RMInfi HsC3 12091 0 110970 0 Eurodollar raw MONEY RATES 1 year 5 W25-562S NEW YORK (AP) Money rales for London Jnftrtk Offered Raw Thursday as reported by Dow Jones 3 months Teterate- 6 months 5by Teierate Interest rate index: 5W0 1 v-aL'5 Prime Rate: 875 Treasury auetton resets Discount Rate: 525 average Broker call loan rate: 750 3-mon as of Noy 3 5 Federal funds market rate: $Irnont) as K0V-11 I High 58125 Low 58125 Last 52-week asof Novr15 5J5 Dealers commercial paper Treasury Bd aued rate on 30-180 days: 582-560 weekly ayerw basrtyteM a4usted fee Commercial paper bv finance constant maturity I-vear as of Nov Odavs: 5 70-5 32 Jam- Bankers acceptances dealer indications: Treat Boncrkel rata 30-Year: 72 30 days 573 60 days 576 Fannie Mae 30 Year morloaoa 90 days 566 120 days 558 commitments: 150 davs 5 52 3J days 7 0 daW7 61 Certificates of DeoosH Primary: FedHome Loan lltfi District Cost ot 90 days! 511 180daysil7 ot October 3V5111 Certifica tes at Oeoostt by dealer Money narttet lun 30 days 573 60 days 579 Merria Lsntcti Ready Assets 90 days 574 120 days 560 30 day average yield: 520 150 days 565 180days563 na not available revised THE MONEY LINE lease price determined by dealer Offered to qualified customers by BMW Financial Services NA Inc through participating dealers Estimated monthly payment of $279 fora 1995 BMW 3181 is based on a suggested retail price of $26170 including dealer prep and destination charge less dealer contribution which could affect final negotiated transaction with a down payment of $2500 for a 30-month (closed-end) lease First payment of $279 plus $300 refundable security deposit or fast month's payment to be paid in advance and the down payment of $250p for a total of $3079 is due at lease signing Title taxes and registration fees may be due at lease signing Title taxes registration license fees insurance maintenance and options are the responsibility of the lessee and are not included in the monthly lease price of $279 Total amount of monthly payments is $8370 At the end of the lease lessee pays an excess mileage charge of $15 per mile over 25000 miles at lease termination a kSfc charge for any excess wear and tear as defined in lease contract and a termination fee of $250 End of term purchase option is available for an estimated price of $15702 Lessee acquires no ownership rights in the -vehicle unless purchase option is exercised Subject to credit approval Offer effective until November 30 1 1995 Specific vehicles are subject to availability and may have to be ordered See your participating BMW AiUnuffos dealer for details BMW of North America Inc The BMW trademark and logo are registered GoldenEye DANJAQ INC AND UNITED ARTISTS CORPORATION ALL RIGHTS RESERVED 875 544 533 530 261 ae hate 7EEK T-BILLS rLKT-C'LL3 1EY-MARKET FUND 7-DAY AVG A AVG MONEY MARKET ACCOUNT.