How high will Microsoft fly? Message Board

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Technology Stocks : How high will Microsoft fly?

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To: t2 who wrote (21437)	4/23/1999 1:00:00 PM
From: RTev	Read Replies (2) of 74651

I think that big deal Microsoft was planning is here - they are going to help Comcast buy Media One. But there's the problem of Comcast's closely held ownership. The family that owns it is apparently reluctant to give up much power in the company. This SmartMoney story deals with the problem: smartmoney.com The Comcast transaction also would leave MediaOne shareholders with nonvoting stock. The Comcast-MediaOne combination would be controlled by the Roberts family, headed by cable pioneer Ralph Roberts, which would have a mere 1.7% of the total ownership of the combined company -- but control 82.3% of the voting shares. It doesn't sound like they'd be willing to give up the kind of power Microsoft would likely demand for all that cash. I think Microsoft would benefit most by making sure that RoadRunner stays independent and gets hooked into Comcast. The fact that the man who ran the company bought out to form MediaOne is now backing AT&T's offer will become significant in this. I'm not sure what to make of it all, but somehow I figure UMG's corporate history will play into it also. MediaOne (formerly USWest Media Group) is one of what might be called the "cousin Bells" -- companies spun off by a Baby Bell. MediaOne was until recently a division of USWest. It's a widely held stock, but many of those owners are current or former Ma Bell employees. That could go either way since USWest doesn't get along very well with AT&T, but it might also mean that shareholders would rather get something with which they're familiar -- T stock, rather than that non-voting Comcast stock.

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