Chinmoy
This is the news release from last Thursday afternoon that spurred the latest price move in both AOL and ATHM, I personally don't see anything thing in this release that makes me believe that AOL is going to get ATHM broadband anytime soon.
Although I can't lay my hands on another release for you at the moment you might question way T has recently placed a multi billion dollar order with MOT and one other company for cable modems.
NEW YORK (CBS.MW) -- AT&T confirmed late Thursday that it's exploring potential deals regarding its controlling stake in ExciteAtHome, sending shares of the Internet portal soaring in after-hours trade.
ExciteAtHome (ATHM: news, msgs) jumped to 43 1/2 on Instinet, up sharply from its close of 41 7/16 in regular trading. Speculation that America Online (AOL: news, msgs) was set to strike a deal with AT&T (T: news, msgs) had fueled a sharp gain by ExciteAtHome Wednesday.
Ma Bell didn't mention AOL in its tersely worded statement.
"We have periodically explored, and we continue to explore, many alternatives with respect to our Internet strategy and our ownership interest in Excite Home," the statement said.
The company said alternatives include "internal options" as well as discussions with third parties.
"The exploration of alternatives remains at the very preliminary stage, and at this time, AT&T has not made any decision to pursue any particular alternative or transaction," the company said, adding that it would make no further comment unless it decided to pursue a particular alternative.
Thursday's statement came after a top AT&T official denied rumors late Wednesday that the company was pondering a deal with AOL for ExciteAtHome.
Leo Hindery, head of AT&T's cable and Internet unit, told Reuters Wednesday that the company was not in discussions to sell its stake in high-speed Internet service provider or to strike a deal with AOL.
"Absolutely not," Hindery said. "There've been no discussions underway whatsoever. I typically don't comment on things of that sort, but when it's absurd, I do."
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