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AT&T's $54 Billion Acquisition of MediaOne Delayed Until 2000

Strategic Insights

— 1 min read

AT&T's anticipated acquisition of MediaOne, valued at $54 billion, is set to be delayed from the first to the second quarter of 2000. The delay is attributed to various issues, including the US Department of Justice's resumed discussion on the deal, the Federal Communications Commission's (FCC) ongoing antitrust investigation, and AT&T's plan to issue a tracking stock for its wireless operations. Despite these challenges, media reports suggest that the deal will proceed as planned, albeit with potential consequences for AT&T's ability to roll out local services and its reputation among investors.

Key Takeaways:

  • The $54 billion acquisition of MediaOne by AT&T is expected to be delayed from the first to the second quarter of 2000.
  • The delay is attributed to the US Department of Justice's restarted discussion on the deal, the FCC's ongoing antitrust investigation, and AT&T's plan to issue a tracking stock for its wireless operations.
  • The deal has received provisional approval from both the European Union and Federal Communications Commission, subject to minor tweaks.
  • AT&T's ability to roll out local services may be delayed as a result of the deal's postponement.
  • The provisional thumbs-up from regulatory bodies suggests that the deal will ultimately proceed.

Statistics:

  • $54 billion: The value of AT&T's anticipated acquisition of MediaOne.
  • Q1 2000 → Q2 2000: The delay in the acquisition timeline.
  • 2nd quarter of 2000: The revised timeframe for the deal's completion.
  • 1st quarter of 2000: The original anticipated timeframe for the deal's completion.
  • 2: The number of regulatory bodies that have provisionally approved the deal.
  • 1: The number of regulatory approvals required for the deal's completion.
  • 2-3rd quarter: The potential timeframe for the deal's outcome.

Sources:

  • Today's Wall Street Journal (WSJ)
  • Newsbytes.com
  • AT&T's official website (http://www.att.com)
  • Reuters TELECOM, ONLINE, BUSINESS/ATT/PHOTO (19991122/WIRES)
  • European Union
  • Federal Communications Commission (FCC)

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