Telephone services

AT&T Completes $55 Billion Acquisition of Tele-Communications Inc.

Strategic Insights

Mar 8, 1999 — 1 min read

AT&T Corp.'s $55 billion acquisition of Tele-Communications Inc. (TCI) has been completed, marking a significant milestone in the company's transformation into a leading provider of a wide range of communications services. The acquisition positions AT&T as a one-stop shop for customers seeking cable Internet and TV services, as well as traditional long-distance phone services. C. Michael Armstrong, AT&T's chairman, hailed the deal as a major step forward in the company's evolution, noting that it will enable AT&T to offer advanced communications, information, and video services to customers.

Key Takeaways:

AT&T has completed its $55 billion acquisition of Tele-Communications Inc. (TCI), gaining control of TCI's cable Internet and TV services.
The acquisition positions AT&T as a one-stop shop for customers seeking a wide range of communications services, including traditional long-distance phone services.
C. Michael Armstrong, AT&T's chairman, highlighted the deal as a major step forward in the company's transformation into an "any distance" company.
The acquisition gives AT&T control of local loops circuits, allowing the company to bypass regional Bell operating companies (RBOCs) local loops.
Plans are in place to offer telephony over cable services in at least 10 cities across the US by the end of the year.
TCI becomes AT&T's newest business unit, AT&T Broadband & Internet Services, which will be responsible for the company's cable ventures and ownership interest in AtHome Corp.
Leo J. Hindery, Jr., former president of TCI, assumes the role of CEO of AT&T Broadband & Internet Services and will report directly to Armstrong.

Statistics:

$55 billion: The total acquisition price of AT&T's purchase of Tele-Communications Inc.
15 years ago: The time frame in which AT&T was last in a similar market position, before being broken up by the US government.
10 cities: The number of cities in which AT&T plans to offer telephony over cable services by the end of the year.

Sources:

"AT&T Completes Purchase of TCI" by Sylvia Dennis, Newsbytes, 1999-03-09.
Reported by Newsbytes News Network, http://www.newsbytes.com

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