BellSouth to Restructure Entertainment Business, Take Charge to Earnings

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BellSouth

(BLS)

said Tuesday it would restructure its video entertainment business and take an after-tax $350 million to $375 million charge to earnings beginning in the fourth quarter.

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The Atlanta-based Baby Bell, which in May announced a deal with

GE Americom

, a unit of

GE Capital

, to expand its satellite TV services beyond the southeast, said it will move away from that business and instead focus on its fiber optic-based video operations. The company said it had reached an agreement with EchoStar's

(DISH) - Get Report

DISH Network to serve its existing residential satellite video customers beginning in January.

The move is intended to "better align" resources with the company's priorities in broadband services, including the accelerated rollout of DSL high-speed Internet services, the company said.

A "significant" portion of the charge would be recognized in the fourth quarter and the remainer in 2001, the company said.