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To: FlatTaxMan who wrote (10730)3/1/1999 3:33:00 AM
From: allen v.w.  Read Replies (2) | Respond to of 40688
 
Rumor Mill: AT&T and AOL to Wed? ( AT&T is PNLK's ISP and more. )

Business Week, The Wall Street Journal and CNBC are spreading the rumor that AOL and AT&T are in merger talks.

I don't see it. Oh sure, it would be one heckuva merger, no question. And I could see where both companies would benefit big-time. But I don't see it for a few reasons.

First, though AT&T does have a substantially bigger market capitalization than AOL (roughly $148 billion to AOL's $83 billion), it wouldn't seem likely. What premium would AT&T have to pay for AOL? Would AT&T want to do it on the heels of its $57 billion acquisition of TCI? Perhaps.

But AOL seems firmly in bed with MCI Worldcom and I'd be surprised to see AOL head Steve Case dis his billionaire boys club buddy John Sidgemore at WorldCom.

Moreover, as several people have pointed out to me, the regulators would very carefully scrutinize this one, and there would be a good case for such a merger being anti-competitive. Stay tuned...