Jennifer Shettle
March 24, 1999
US cable groups in $75 billion merger
Another merger in the telecommunications industry has taken place. Comcast cable and Media One Group, Americas third and fourth largest cable companies, have agreed to merge. The deal would combine Comcasts nearly six million subscribers with Media Ones five million subscribers, making it one of the largest deals in the industrys history. It is awaiting approval by shareholders and regulators.
This merge is said by Comcasts president to be a perfect fit because 80% of their combined subscribers are in the nations top 20 markets. The merge would bring them to top of the industry competing with Time Warner and AT&T. They will have an edge over AT&T, however, in getting to the cable Internet market. Both Comcast and Media One have been heavily investing in upgrading their technology in order provide two-way services (upstream and downstream capabilities). Whereas, AT&T who recently purchased TCI will have to spend billions to upgrade their outdated systems.
Source:
Sydney Morning Herald (www.smh.com.au/news/9903/24/business/business3.html)