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transactions. Higher interest income more than offset
a rise in interest expense primarily due to increased
debt levels attributable to common stock purchases, the
1997 third quarter recapitalization and new
acquisitions.
* * * * * * *
LIQUIDITY AND CAPITAL RESOURCES
* * * * * * *
Acquisitions
* * * * * * *
In February 1999, Eagle New Media Investments,
LLC, an investment affiliate of the Company, acquired
Newport Media, Inc., a publisher of shopper
publications in the Long Island and New Jersey areas,
for $132 million.
Dispositions
On July 31, 1998, the Company completed the
divestiture of Matthew Bender in a tax-free
reorganization and the sale of the Company’s 50%
ownership interest in Shepard’s to Reed Elsevier plc.
The two transactions were valued at $1.65 billion in
the aggregate. Proceeds from the sale of Shepard’s
were used to pay down commercial paper and short-term
borrowings of $222.4 million. Concurrently with the
closing of the Matthew Bender transaction, the Company
became the sole manager of Eagle New Media Investments,
LLC (Eagle New Media). At December 31, 1998, the
assets of Eagle New Media were $605.8 million of cash
and cash equivalents, $753.0 million of Times Mirror
stock, $15.0 million of marketable securities and
$22.3 million of other assets. On October 9, 1998, the
Company completed the divestiture of Mosby, Inc. to
Harcourt General, Inc. in a transaction valued at
$415.0 million. Concurrently with the closing of the
Mosby, Inc. transaction, the Company became the sole
manager of Eagle Publishing Investments, LLC (Eagle
Publishing). At December 31, 1998, the assets of Eagle
Publishing were $377.2 million of cash and cash
equivalents, $34.5 million of marketable securities and
$20.1 million of other assets. * * * The Company
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