Subject: FWD: Microsoft set for set-top
From: Jean Camp <Jean_Camp@harvard.edu>
Date: Thu, 6 May 1999 12:14:27 -0400

Somehow three giant companies  (AT&T, MediaOne and Microsoft) will  join
together to create a nimble, responsive company with cutting edge
technology. Or maybe they will just be a large monopoly and shove
second-ratge crap down consumer thoats. After all cable broadband customers
_really don't_ have a choice.

-Jean
 from the standard....

AT&T and Friends: Make Deals, Not War

They came girded for battle and instead wound up in each others' arms.

A bidding war was averted before it got off the ground and it looks
like MediaOne will go to AT&T for $62 billion, as reported widely
Monday. There appears to be something for almost everyone in the deal
that Comcast President Brian L. Roberts described to the AP as "an
elegant win-win result."

Group hugs aside, it had to feel great for old technology dog AT&T to
bare its teeth and scare off new-media pooches Comcast, MCI WorldCom
and AOL. A year ago, AT&T didn't know from cable; if the MediaOne deal
sails, it will lead the field.

As part of the deal AT&T and Comcast will exchange some cable systems,
giving Comcast a net gain of 750,000 subscribers, for which it will
pay between $3 and $3.5 billion - about $4,500 per subscriber (the
going rate). One and a half billion of that will come from MediaOne
for leaving Comcast at the altar.

In the New York Times, Geraldine Fabrikant and Seth Scheisel focused
on Microsoft's role as kingmaker in the deal. Its decision not to back
Comcast's bid and instead cozy up to AT&T was crucial. Microsoft may
buy 2 to 3 percent of AT&T stock at a premium, and for that could get
a guarantee that AT&T will use a Windows operating system in its
set-top boxes. Microsoft also gets in on a broadband network for
delivering its software and services to American homes - 60 percent of
which will sit along AT&T's cable lines.


see also..
A Swirl of Large Deals Is Expected With AT&T at the Center
http://www.nytimes.com/library/tech/99/05/biztech/articles/05cable.html

Comcast Reaches Accord With AT&T on MediaOne
http://interactive.wsj.com/articles/SB925862263945351824.htm

AT&T Wins MediaOne Challenge
http://cbs.marketwatch.com/news/current/umg.htx?source=htx/http2_mw

Comcast Quits MediaOne Bid, Inks AT&T Deal
http://www.news.com/News/Item/0,4,36114,00.html?st.ne.fd.tohhed.ni

Comcast Lets AT&T Buy MediaOne
http://www.washingtonpost.com/wp-srv/business/daily/may99/att5.htm

Comcast Quits MediaOne Bid, Inks AT&T Deal
http://www.news.com/News/Item/0,4,36114,00.html?st.ne.fd.tohhed.ni

Comcast Reaches Accord With AT&T on MediaOne
http://interactive.wsj.com/articles/SB925862263945351824.htm

AT&T, Comcast Reach Pact Clearing AT&T-MediaOne Deal (Reuters)
http://www.sjmercury.com/svtech/news/breaking/merc/docs/000273.htm