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Technology Stocks : Broadband Wireless Access [WCII, NXLK, WCOM, satellite..]
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To: silicon warrior who wrote (85)4/22/1999 10:07:00 PM
From: SteveG  Read Replies (1) of 1860
 
Reingold from last month on the effects of CMSCA/UMG to T. (Check here in the AM for how Reingold views TODAY'S news):

**OLD** From 3/23/99

Investment Highlights:
· Prior to market open, Comcast (CMCSA,
C-1-1-7, $63.50) announced the acquisition of
MediaOne Group (UMG, 6-6, $66.63). We
believe this has positive implications for the
success of AT&T's Time Warner joint venture
and greatly increases the possibility of a joint
venture between AT&T and Comcast/UMG.
· We anticipate that the combined Comcast/
UMG will be much more cooperative in
approving the Time Warner joint venture
(UMG owns 25% of Time Warner
Entertainment) than UMG standalone would
have been. As a result, we believe that this
announcement will eliminate the overhang on
AT&T stock caused by concerns that AT&T
would have to acquire UMG in order to gain
approval of the Time Warner JV.
· We also believe that there is a good chance
that AT&T will establish a joint venture with
Comcast/UMG for access to the 18.4M homes
passed by the combined company's networks.
Brian Roberts, current CEO of Comcast and
expected CEO of the combined company, has
stated his interest in telephony and willingness
to work with AT&T. We estimate that if a
50/50 joint venture with Comcast/UMG were
to be established it would dilute AT&T
earnings by only $0.02 in 2000 and would
provide $0.01 of EPS in 2001. We estimate
that the joint venture would provide
approximately $2.50 in incremental
discounted cash flow value to our current $98
price objective (23% upside to current share
price) for AT&T.
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