AT&T BROADBAND TO MERGE WITH COMCAST
[from convergedigest.com]
AT&T agreed to merge its cable operations with Comcast, the third
largest cable operator in the US with 8.4 million subscribers, in
a transaction that values AT&T Broadband at an aggregate value of
$72 billion. The new company, to be called AT&T Comcast
Corporation, would have approximately 22 million subscribers and
a major presence in 17 of the United States' 20 largest
metropolitan areas, including Atlanta, Boston, Chicago, Dallas-
Forth Worth, Denver, Detroit, Miami, Philadelphia, and San
Francisco-Oakland. The new company would have approximately 5
million digital video customers, 2.2 million high-speed data
customers, one million cable telephony customers and annual pro
forma revenue of approximately $19 billion. AT&T Comcast would
assume nearly $20 billion in debt and other liabilities from AT&T
and its subsidiaries, as well as $5 billion of AT&T subsidiary
trust convertible preferred securities held by Microsoft. In
conjunction with the transaction, Microsoft has agreed to convert
the $5 billion of AT&T subsidiary trust convertible preferred
securities into 115 million shares of AT&T Comcast. The deal is
subject to regulatory review. att.com
comcast.com
AT&T, December 19, 2001
AT&T originally paid about $4,100 per subscriber for TCI and
MediaOne, largely in AT&T stock. AT&T said today's announcement
values AT&T's cable systems at approximately $4,500 per
subscriber based on today's closing price of Comcast stock.
In July, Comcast made a $58 billion proposal to AT&T to merge its
cable networks with those of AT&T Broadband. |
