COMCAST CORP. MAKES $44.5 BILLION BID FOR AT&T’s CABLE OPERATION
Comcast Corp. made an unsolicited offer Sunday to buy AT&T‘s cable operation for $44.5 billion, plus the assumption of $13.5 billion in debt, in a stock deal that would create the nation’s biggest cable television company. For its part, AT&T emphasized that it has no plans to sell the cable operations.
AT&T is already the nation’s No. 1 cable provider, with approximately 16 million subscribers, though the company plans to sell systems with more than 2 million subscribers. Comcast is No. 3, with about 8.5 million customers, behind AOL Time Warner.
If Comcast ultimately prevails in its bid, such an acquisition would create a cable television giant serving about 22 million subscribers, or about one of every five homes in the United States. After spending about $90 billion to buy the cable powerhouses Tele-Communications Inc. and the MediaOne Group, AT&T said in 2000 that it intended to split into three separate companies with four separate stocks. Both companies are upgrading their systems to offer more TV channels and high-speed Internet access.
AT&T said that it would review Comcast’s proposal, but it reiterated its statement on Sunday that it has no intention of selling its cable business. Since AT&T announced its breakup plan, Comcast has privately tried to persuade AT&T to agree to merge the companies’ cable operations. AT&T has refused, perhaps fearful that Comcast would take charge of the combined business.
Under the terms of Comcast’s offer, AT&T’s stockholders would receive Comcast stock worth $12.60 for each share they already own. AT&T cable subscribers would probably see a more efficient operation if Comcast acquires AT&T’s cable operation, analysts said Monday. But those efficiencies might not translate into lower prices or enhanced programming.
If you enjoyed this article and want to receive more valuable industry content like this, click here to sign up for our FREE digital newsletters!
Security Is Our Business, Too
For professionals who recommend, buy and install all types of electronic security equipment, a free subscription to Security Sales & Integration is like having a consultant on call. You’ll find an ideal balance of technology and business coverage, with installation tips and techniques for products and updates on how to add sales to your bottom line.
A free subscription to the #1 resource for the residential and commercial security industry will prove to be invaluable. Subscribe today!