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Technology Stocks : America On-Line (AOL)
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To: Sonny McWilliams who wrote (32060)10/1/1999 1:49:00 PM
From: Tecinvestor  Read Replies (1) of 41369
 
Sonny, the news that AT&T might be prepared to sell out to AOL and then buy back the AtHome Network high-speed programming piece of the business still does not make sense. If such a proposal is implemented, I would assume AOL will insist that it be granted high speed access via Athome's facilities. If this is so, then why doesn't Athome simply enter into a straightforward deal with AOL to lease high speed cable access from Athome?

Somewhere I recall that there is some exclusivity provision involving AT&T and Athome that ties things up for a couple of years. Perhaps this convoluted proposal allows AT&T to circumvent that exclusivity arrangement.

Any more thoughts?
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