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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (21437)	4/23/1999 1:00:00 PM
From: RTev	Read Replies (2) \| Respond to of 74651

I think that big deal Microsoft was planning is here - they are going to help Comcast buy Media One. But there's the problem of Comcast's closely held ownership. The family that owns it is apparently reluctant to give up much power in the company. This SmartMoney story deals with the problem: smartmoney.com The Comcast transaction also would leave MediaOne shareholders with nonvoting stock. The Comcast-MediaOne combination would be controlled by the Roberts family, headed by cable pioneer Ralph Roberts, which would have a mere 1.7% of the total ownership of the combined company -- but control 82.3% of the voting shares. It doesn't sound like they'd be willing to give up the kind of power Microsoft would likely demand for all that cash. I think Microsoft would benefit most by making sure that RoadRunner stays independent and gets hooked into Comcast. The fact that the man who ran the company bought out to form MediaOne is now backing AT&T's offer will become significant in this. I'm not sure what to make of it all, but somehow I figure UMG's corporate history will play into it also. MediaOne (formerly USWest Media Group) is one of what might be called the "cousin Bells" -- companies spun off by a Baby Bell. MediaOne was until recently a division of USWest. It's a widely held stock, but many of those owners are current or former Ma Bell employees. That could go either way since USWest doesn't get along very well with AT&T, but it might also mean that shareholders would rather get something with which they're familiar -- T stock, rather than that non-voting Comcast stock.

To: t2 who wrote (21437)	4/23/1999 1:38:00 PM
From: taxman	Respond to of 74651

"AT&T offer" haven't been following that. posting from briefing. regards General Commentary: AT&T (T 59 1/2 +2 1/2) offering to acquire MediaOne (UMG 69 1/2 +2 9/16) in cash/stock deal valued at roughly $58 bln, or $87 3/8 a share... Offer represents a 17% premium over Comcast's (CMCSA) bid for UMG... In after hours trading, T is down 2 1/2, UMG up 11 1/2.. T expects deal to be dilutive in first full year of combined operations to tune of $0.30... Ouch!... Expect additional weakness in T today... T also noted it expects to divest nearly $20 bln in nonstrategic UMG assets.