Microsoft invests $1 billion in Comcast

Microsoft announced this morning a $1 billion investment in Comcast Corp.,America's fourth-largest cable company. The deal gives Microsoft about 14%of the company's stock, and the cash infusion will help Comcast enhancetheir "deployment of high-speed data and video services via its cable delivery network." Bill Gates said the company looks at Comcast as anotherstep in the integration of PCs and TVs.

"Our vision for connecting the world of PCs and TVs has long included advanced broadband capabilities to deliver video, data and interactivity to the home," he said in a release. "Comcast's integrated approach to cable distribution, programming and telecommunications complements that vision of linking PCs and TVs."

Comcast is itself an investor in @Home, the cable modem service thatoffers flat-fee, high-speed Internet access to users in several U.S. cities. @Home recently announced a deal with the Microsoft Network thatwill allow its customers to access MSN content for only $4.95 a month