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To: RocketMan who wrote (14734)	5/4/1999 10:54:00 PM
From: Boplicity	Respond to of 41369

2mil or 700 thou which is it? And Comcast pays T? AT&T To Acquire MediaOne for $54B .c The Associated Press NEW YORK (AP) -- AT&T Corp. and Comcast Corp. reached a deal Tuesday night, paving the way for AT&T's $54 billion acquisition of MediaOne Group Inc. Under the agreement, the two companies will exchange various cable systems, resulting in the net addition of 750,000 subscribers for Comcast, the nation's No. 3 cable company. Because Comcast is obtaining more subscribers, it will pay AT&T up to $3.5 billion. The majority of the exchanges are subject to the completion of the AT&T-MediaOne merger. WHAT? Comcast will also receive an option from AT&T to purchase over the next three years additional cable systems with a total of about 1.25 million subscribers. The two companies said the swaps were designed to improve each company's geographic coverage. Comcast has also agreed to offer AT&T-branded telephone offerings in all of its markets ''in an expedited basis,'' as soon as AT&T has concluded separate agreements with two other non-AT&T affiliated multiple system operators. ''This transaction makes strategic sense for both companies,'' said AT&T chairman and CEO C. Michael Armstrong. ''Geographic clustering enables more effective telephony competition. And AT&T is proud to join with Comcast in bringing AT&T branded communications services to its customers.'' Brian L. Roberts, president of the Philadelphia-based Comcast, said the deal would strengthen the company's cable presence, giving them more than 8 million subscribers. He added that the deal will allow Comcast to provide new products to its customers. ''This is a different outcome than our MediaOne proposal, but it is an elegant win-win result,'' Roberts said. A MediaOne spokesman said the company was pleased by the AT&T-Comcast deal. ''This removes a lot of the uncertainty we were facing,'' said Steve Lang, spokesman for MediaOne. ''We look forward to moving ahead and we wish the people of Comcast the best.'' AT&T would not elaborate on what cable properties would be exchanged between the two companies. The deal apparently brings to a close a bidding war for MediaOne, the country's fourth-largest cable company and will give AT&T access to 60 percent of American homes with cable. On April 22., AT&T issued a surprise bid for MediaOne, ultimately derailing Comcast Inc.'s $48 billion agreement to acquire it. MediaOne said Monday it was choosing AT&T's cash and stock offer, but also said Comcast had until Thursday to make another offer. That sent Comcast scrambling to find help. Microsoft Corp. and America Online Inc., who both signed confidentiality agreements to examine MediaOne's secret internal financial data last week, were rumored to be examining a possible partnership with Comcast. MCI WorldCom was also reportedly interested in getting involved.