Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : NorthPoint Communications Holdings, Inc. (NPNT) -- Ignore unavailable to you. Want to Upgrade?

To: Tom Tallant who wrote (334)	11/22/1999 11:38:00 AM
From: Skywatcher	Respond to of 786

SBC Buys 43% Stake in Prodigy SBC Communications (SBC:NYSE) announced on Monday that it was acquiring a 43% stake in Prodigy Communications (PRGY:Nasdaq) in a deal that joins their consumer and small business Internet operations and sends Prodigy into a host of new markets. The agreement means Prodigy will manage SBC's 650,000 dial-up, ISDN and basic digital subscriber line Internet customers, raising the Internet service provider's subscriber list to more than 2 million. By exclusively marketing Prodigy's service, SBC, the nation's biggest local telephone company, intends to add 1.2 million more Internet customers to Prodigy over the next three years. SBC, based in San Antonio, has already committed $6 billion toward bringing high-speed DSL to a majority of its customers by 2002. Shares of Prodigy rose 1 1/8 to 33 3/8 by late Monday morning, while SBC was off 3/4 to 50 3/4. "This is peanuts, a non-event for SBC, but it's a very big plus for Prodigy," said Tom Burnett, president of the independent research group Merger Insight. "For Prodigy, it could open up a whole new market." Both companies' boards signed off on the deal. It still must receive regulatory approval, which is expected to take three to six months. Under the terms of the deal, Prodigy will contribute its operations to a partnership it is forming with SBC. The partnership, which will use the Prodigy brand name, will also hold some SBC Internet assets. The partnership will be 57% owned by Prodigy and 43% owned by SBC, which can convert its stake into a direct interest in Prodigy. Other parts of the pact include the White Plains, N.Y.-based Prodigy using SBC as its preferred telecommunications services provider and SBC taking three seats on Prodigy's nine-member board. "In effect, we're creating a broadband-focused ISP that is going to dramatically change what it means to be online -- giving us the ability to attract and retain customers in the 'new' high-speed Internet market," James D. Gallemore, executive vice president for SBC's strategic marketing and planning, said in a statement. Since NPNT is the prime provider of DSL for SBC...this will be great for the rollout picture of our services...and with prodigy pushing the 'free' computer with the rebates, more subscribers...more revs chris