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To: KW Wingman who wrote (23582)	7/18/2000 3:02:57 AM
From: FR1	Respond to of 29970

How would you have suggested that E@H beat UPC in Europe at offering broadband internet without access to the cable systems? It's the same problem AOL has. E@H didn't cry to the government, they made a marketplace deal. (No doubt, with a little help from some friends like John Malone). This is what I was thinking. People opposed to the deal feel ATHM does not need Chello. Two problems with this: 1) You would have ATHM trying to take market away from UPCOY, the second largest cable in Europe, which is owned by T through Malone. Makes no sense at all. 2) If you oppose the deal then you feel ATHM should not make partnerships and ATHM has the strength to build a system by itself. Day dreamer. I agree - much more strength combining the two forces for worldwide development. This allows ATHM to focus on the USA.

To: KW Wingman who wrote (23582)	7/18/2000 3:08:28 AM
From: KW Wingman	Read Replies (2) \| Respond to of 29970

Someone who had a early clue (7/3). He still has a clue where some haven't figured it out yet (The "I'll wait to buy until I know it is going up" school -- or until it is it is too to catch early jump in price) boards.fool.com Author: firenza Number: of 36632 Subject: Malone's fingerprints everywhere I look. Date: 7/3/00 1:14 AM There are so many moving parts to this puzzle that it becomes a bit confusing, so I thought I'd try to put all the pieces and moves on the table. Malone seems to be a commor denominator in so much of this that I'll try to sketch out his roll. Back in June of 1998 ATT tried to make a play for AOL and was rebuked. At that time, in my opinion, Michael Armstrong decided that AOL could deal with ATT now or deal with ATT later, but either way, they were going to be made to deal with Armstrong and ATT. So Armstrong's first move was to acquire TCI which was owned by John Malone. Malone managed to structure an interesting deal with ATT, one which created LMG.a, an ATT tracking stock, while at the same time laying any tax burden of a sale or divestiture of the TCI properties squarly on ATT's shoulders. Malone beccame the chairman of Liberty in this deal. Why did Malone do this? And why did T agree? Well for Malone's part, he had to realize that if ATT was shopping for a cable footprint to run it's local and long distance phone service on, they would have to be shopping for other cable properties. If ATT were to acquire another cable property (and indeed they did in the Media One deal), ATT would have to go through the regulatory process. One which might require the divestiture of certain of ATT's previously acquired properties. Indeed, the FCC will require ATT to divest itself some properties as a condition of the UMG deal. Now an interesting thing happened of the way to the UMG deal. ATT became partners with Time Warner, yes the very Time Warner which AOL is planning on acquiring. Hmmm..deal with me now or deal with me later...not bad Mike. Seems AOL would have to deal with T if they became a partner huh...interesting. Well T will have to divest of something, either it's LMG.a or Roadrunner which T shares with Time Warner. There are some who think that T will want to stay in bed with TWX in order to get a deal with AOL for it's telephony. I think they have much bigger ideas which will require AOL to come knocking on T's door. What would seem to be a much better deal from my perspective is T divesting itself of Roadrunner. The FCC has indicated that T can keep any infrastructure related to broadband in this divestiture as well as being able to roll the Roadrunner Sub's over to ATHM after 2001. What are they losing if they off Roadrunner then...NOTHING. Neat rick. So T get's to keep the infrastructure, beef up subs for it's majority controlled ATHM. I think this will be the no brainer choice because.... John Malone has been very busy with LMG.a which HE controls. Busy putting some very intersting deals together for himself and ATT. Deals like this one: UnitedGlobalCom and Liberty Media Agree to Combine International Broadband Assets The deal combines the distribution and content of Liberty Media, an entity run by media mogul John Malone and a unit of AT&T (T: news, msgs), with UnitedGlobalCom, the largest broadband communications provider of video, voice and data services outside the U.S. Under the deal, UnitedGlobalCom will gain control of a 25 percent indirect, economic interest in Telewest Communications (TWSTY: news, msgs), the second largest broadband provider in the United Kingdom. It'll contribute the indirect interest in Telewest to its subsidiary United Pan-Europe Communications (UPCOY: news, msgs) in exchange for 128.2 million UPC shares. The transaction will increase UnitedGlobalCom's ownership in UPC to about 61 percent. Wow, so LMG.a which is actually ATT which actually controls ATHM seems to be putting all the pieces together in Europe now. Afterall, ATT has as much of a footprint in the US cable market as the government will allow, might as well get the international angle together. If ATT is going to run local and long distance on the cable wires, it will take an international presence to achieve their former dominance. So all these deals which are totally incestuous are announced and the very same week, T starts to talk about spinning off it's traditional long distance business. It's not T's future, it will not be a profit center of the future. T wants to concentrate on delivering voice, data via cable, and with the United Global deal made T get's a big piece of that international footprint. So what does all this have to do with ATHM?? ATHM is vital to ATT's plans for the future, it will be it's broadband property for the internet, it's jewel. The likes of AOL will have to run via (T's)ATHM's lines in the near future since AOL's TWX footprint is pretty meager. Best and most interesting of all to me. Malone has managed to get LMg.a's indirect interest in Telewest thrown into UPC's fold. And what does UPC have that is so appealing?? CHELLO. Yes Malone, has already begun to line up the Chello deal for ATHM (part of the LMG.a) stable. The rest of the deal will be put together directly with ATHM, but in my mind, the foundation of the deal has already been layed via the LMG.a and United GlobalCom deal. Malone has his fingerprints on all these deals..amazing. Malone=TCI, TCI=ATHM and LMG.a which = ATT, so you can see that these deals announced last week seem to give a very clear picture of the future if we can get past all the confusing pieces. As I said earlier, the rest of the control of Chello (as yet to IPO) will be left for ATHM...done deal in my mind. Malone's first part of the deal was just one of the part's of the final deal IMO. Where does that leave AOL...looking to deal with ATT and ATHM for footprint both here and abroad after these important deals. T's stock price now....very appealing. It will take time to put all this together, but I think I see the light at the end of Armstrong's tunnel now. Although I sold a few months ago, or actuallly had my 50's taken out when T was at $53, I'm feeling comfortable about initiating another longer term position in T now. ATHM's stock price, stupidly low. I've held it since early 1998 been up and down with it, plan to hold it for what I am certain will be a very big pay off. LMG.a I've owned it for some time and plan to hold for a very long time. Obviously there will have to be other deals internationally for the broadband internet as well as telephony to work for ATT. I think these will be a series of deals similar to last weeks United Global deal. Not blockbusters which draw everyone's attention, but important and big to those of us who have taken the time to understand the importance of each and every piece of the emerging puzzle.