Excite@Home to file for bankruptcy protection, sell broadband assets to AT&T
NEW YORK (CNNfn) - Excite@Home will now be at home with AT&T.
The broadband company said Friday it is filing for bankruptcy protection and selling "essentially" all of its broadband Internet access business to AT&T (T: up $0.60 to $19.30, Research, Estimates) for $307 million.
Excite@Home (ATHM: up $0.02 to $0.15, Research, Estimates) said the Chapter 11 filing will enable the company to continue its high-speed Internet access business during the sale.
The sale could change if there are other higher bids, and it requires the approval of the bankruptcy court, among other conditions.
"AT&T's offer reflects the value in our network, services, customer base and skilled employees," said Patti Hart, Excite@Home chairman and CEO, in a statement.
On Tuesday the company laid off 500 workers in an effort to save cash.
In an unrelated move, AT&T on Friday signed a confidentiality agreement with Comcast (CMCSK: up $0.57 to $35.87, Research, Estimates) which will revive negotiations for Comcast's purchase of AT&T Broadband. Attempts to reach Comcast for comment on the Excite sale were unsuccessful. |
