THREAD ---Some possible reasons for selling :
eport: Microsoft talks deal with AT&T
Also, delay in new Oracle database called 'nonmaterial'
By Brenon Daly, CBS MarketWatch
Last Update: 2:57 PM ET Jan 8, 1999
NewsWatch
NEW YORK (CBS.MW) -- Microsoft Corp. has reportedly shopped its
Microsoft Network and possibly other Microsoft media properties to
AT&T, according to press reports Friday.
The USA Today reported that the phone giant (T)
is not interested in the deal for now, but Microsoft
(MSFT) considers the talks "ongoing." The paper
cited people familiar with the talks; both companies
declined to comment.
Microsoft was unchanged at 150 1/2 Friday
afternoon, while AT&T was up 3 3/8 to 85 5/8.
AT&T shares rallied after the company said that
1999 profits from operations will surpass Wall
Street estimates despite higher spending to upgrade
cables systems it's about to acquire. See related
story.
David Card, an analyst at Jupiter Communications,
said it "makes sense" for AT&T to pick up the
Microsoft Network, but he questioned whether Ma
Bell would want the rest of Microsoft's Interactive
Media Group, or IMG.
Although Microsoft loses millions of dollars each year on its IMG division,
Card said "they're doing as well as competitors are doing, whereas the
MSN is getting blown away by AOL."
AT&T provides Internet service for about 2 million people and could
double that by acquiring MSN. AOL (AOL), meanwhile, has more than
13 million subscribers.
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