Pacific Telesis Buys Two Video Companies

Pacific Telesis on Wednesday announced an agreement to acquire two wireless video companies so it can provide more than 100 channels of digital cable television to millions of homes.

Plans include offering the service to 9 million homes in California, Washington, South Carolina and Florida by late 1996 or early 1997.

The purchase will allow the San Francisco-based telephone company to compete with cable concerns in the San Francisco Bay area, San Diego and Victorville, Calif., as well as Seattle and Spokane, Tampa, Fla., and Greenville, S.C., by offering a video alternative, PacTel Enterprise Group President Michael Fitzpatrick said.

Pending regulatory approvals, the company plans to buy Wireless Holdings Inc. and Videotron Bay Area Inc. in a stock swap valued at between $160 and $175 million, depending on future adjustments.