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AT&T, GI, Motorola strike $1 billion cable
deal
By Bloomberg News
Special to CNET News.com
September 28, 1999, 4:10 a.m. PT
AT&T is expected to announce plans to buy as many as 2 million additional
cable-television set-top boxes from General Instrument, and 1 million cable
modems from Motorola in a transaction worth about $1 billion, according to
reports.
The Wall Street Journal reported the news, citing the trade press, including Web site
broadcastingcable.com, and people familiar with the matter. The transactions
would mark the long distance telephone company's first major cable modem purchase from
Motorola, which announced plans September 16 to acquire General Instrument for $10.8
billion in stock.
The 2 million would be in addition to the 6.5 million set-top boxes that AT&T has already
committed to buying from General Instrument, the biggest maker of digital TV set-top
boxes; the new purchases represent a strong endorsement of the Motorola-General
Instrument combination, the Journal said.
Semiconductor maker Motorola said September 16 that buying General Instrument won't
hurt earnings per share in 2000 because the purchase is now expected to boost sales of
cable equipment.
Copyright 1999, Bloomberg L.P. All Rights Reserved.
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