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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Capitalizer who wrote (159)	2/1/1999 6:33:00 PM
From: pat mudge	Respond to of 2347

More on AT&T-Time Warner: February 1, 1999 Dow Jones Newswires AT&T Mulling Internet Sale, But Not In Talks, Exec Says By SHAWN YOUNG Dow Jones Newswires NEW YORK -- AT&T Corp. (T) is thinking of selling its Internet-access business, but it isn't currently in talks about a deal, said Tele-Communications Inc. (TCOMA, TCOMB) President Leo Hindery, who will run AT&T's cable-service operations after AT&T buys the cable company. As reported in The Wall Street Journal last month, AT&T is thinking of selling its Internet-access business, including its WorldNet service, to At Home Corp. (ATHM), which it will control after its pending merger with Tele-Communications, known as TCI. "It's something we're considering," Hindery told Dow Jones. "We're not in discussions." At Home, based in Redwood City, Calif., provides high-speed consumer Internet service over cable wires by way of cable modem links. TCI is the largest shareholder in At Home. Once AT&T, of New York, buys TCI, based in Denver, it plans to offer combined Internet, long-distance, cable and local phone service. AT&T/TCI Customers who want high-speed service via cable modem will get At Home service. Those who are content with standard dial-up service can go with WorldNet. Analysts have praised the notion of AT&T putting its Internet-access business under one umbrella by means of a deal with At Home. "It's smart to integrate," said Merrill Lynch & Co. analyst Dan Reingold in an interview last week. AT&T and Time Warner Inc. (TWX) announced Monday they have agreed to a joint venture that will nearly double the number of customers AT&T can reach through cable. Time Warner offers a rival service to At Home called Road Runner. "One could argue that you could put them together," Hindery said. However, none of the possible deals would occur until AT&T and TCI close their merger, which should happen a few weeks after shareholder votes in mid-February. Company officials say that as AT&T rolls out combined services, TCI customers will be offered At Home's high-speed service, while Time Warner customers will be offered Road Runner. Customers of either cable company can sign up for WorldNet's service, which operates over phone lines. WorldNet currently has 1.4 million customers and will get more than 1 million more customers when it closes its $5 billion purchase of International Business Machines Corp.'s (IBM) global network. One potential deal for WorldNet could involve At Home paying AT&T $1 billion in stock, according to the Wall Street Journal. Meanwhile, AT&T intends to pursue various deals with Internet service providers who can bring their customers onto phone lines AT&T will be able to add to homes using the cable networks, said Chairman and Chief Executive C. Michael. The company is also hammering out deals that will help it reach another 20 million or so U.S. homes served by cable companies other than Time Warner or TCI. The company expects to have those deals in place by spring, Hindery said. Smaller players were reportedly waiting for a cue from Time Warner before wrapping up deals for themselves. Hindery estimated the cost to AT&T for the remaining deals at "a couple of billion more." AT&T's deal for TCI was valued at $32 billion when it was announced last summer. The Time Warner deal is expected to cost AT&T about $600 million, not including costs and fees that will kick in once customers start signing up for the service