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Re: Continental/MediaOne/AT&T/?

--- lglavin@lycosmail.com wrote:
> This means AT&T has to pay a certain strike price
> for a stock called EXCITE@HOME that has tanked worse
> than Dr. Laura. Since they lack the moolah to do this, 
> it's possible they will sell some of their cable TV
> ventures to raise $$$$$$...3-billion worth. It doesn't
> mean Comcast or Cox will necessarily get the properties 
> or that any in Massachusetts will be put on the block,
> but it sure looks that way.  

The problem seems to be that their catv/internet operation
is eating away at the profits...They already told Wall Street
investors on Thursday that 4th qtr earnings will be way
below expectations. Plus, their stock price 
hit the 52-week low this week. When their 4th qtr earnings
come out, it will probably drop their stock even lower. WS
is brutal.  AT&T Broadband could be a very attractive buy for
someone like Comcast which dominates Philly and Motor City.

In addition, FCC ruled(4-1) against AT&T yesterday for
failing to comply with basic merger conditions  when they 
absorbed MediaOne this year. They either have to sell
large interest in cable programming or divest a large
chunk of their operations(about 10mill subs), which will
also include some Mass. systems. Cable programming is where
the money is in the cable industry and it's way
more profitable than operating cable systems. My bet is
that they(AT&T) will sell and sell big this time to stop their
stock from bleeding so much. I just hope it's Comcast and not
Cox which will tell us what to watch and why.

Two weeks ago, Comcast put $1billion of its stock bonds out there
to raise future acquisition $$$. Guess what they'll be having
for dinner very shortly?! :)

Boston/Brookline subs are about go from Cablevision to AT&T to (probably)
Comcast in mere 3 months. Unreal.


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