Microsoft may form tracking stock - WSJ
NEW YORK, May 4 (Reuters) - Microsoft Corp is considering creating a tracking stock that would follow the performance of its Internet businesses, as well as any new cable operations, the Wall Street Journal reported on Tuesday.
The new stock would also serve to separate the volatile media business from Microsoft's highly profitable software businesses, the newspaper said.
People close to Microsoft's thinking stressed that the tracking-stock idea is only one of several possibilities that may emerge from the round-robin discussions between all the players in the landmark takeover battle for MediaOne Group Inc.(UMG - news) between Comcast Corp. (CMCSA - news) and AT&T (T - news).
Indeed, both Microsoft and Comcast, likely partners in any attempt to top AT&T's $54 billion bid, have held discussions with AT&T in recent days.
Microsoft has long been talking with AT&T, which already owns the No. 2 cable operator, Tele-Communications Inc, about gaining a larger role in supplying software for interactive television and high-speed Internet access. Comcast has also held discussions with AT&T about possible joint efforts.
People close to the matter said MCI WorldCom Inc (WCOM - news), the communications giant, is considering entering into a confidentiality agreement with MediaOne, giving it access to the cable company's financial books.
Under one scenario, MCI WorldCom may team with America Online Inc. (AOL - news), which is particularly interested in MediaOne's stake in RoadRunner, the high-speed Internet service.
--------------------------------------------------------------------------------
|
