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AT&T's $62.5 Billion Acquisition of MediaOne Moves Forward with Minnesota Approval

Strategic Insights

— 1 min read

AT&T's acquisition of MediaOne, a Denver-based cable TV firm, is one step closer to completion with the Minnesota Public Utilities Commission's (PUC) approval. This comes after two other states, the Federal Communications Commission, and the Department of Justice still need to greenlight the deal. The acquisition has already received approval from about 90% of the affected city cable TV franchising authorities in 15 states. The deal is expected to finalize in the first quarter.

Key Takeaways:

  • The Minnesota Public Utilities Commission (PUC) has approved AT&T's $62.5 billion acquisition of MediaOne, a Denver-based cable TV firm.
  • The acquisition has received approval from about 90% of the affected city cable TV franchising authorities in 15 states.
  • The deal still requires approval from two other states, the Federal Communications Commission, and the Department of Justice.
  • The PUC has separated the "open access" issue from the approval of the merger, with AT&T modifying its stance by allowing one outside ISP, Mindspring, to offer cable modem service through AT&T after 2002.
  • Cable modems permit Internet access at nearly 30 times the speed of the fastest conventional computer modems.
  • The PUC will hold a hearing on the open access issue in February, according to John Lindell, a PUC financial analyst.

Statistics:

  • The acquisition of MediaOne is valued at $62.5 billion.
  • MediaOne provides more than 60% of the cable TV service in the Twin Cities.
  • The deal has received approval from about 90% of the affected city cable TV franchising authorities in 15 states.
  • Cable modems permit Internet access at nearly 30 times the speed of the fastest conventional computer modems.

Sources:

  • "AT&T's Bullish Acquisition Bets are Paying Off" [No publication date cited]
  • "MediaOne in talks with AT&T, other companies for acquisition" [No publication date cited]
  • "Minnesota Public Utilities Commission approves AT&T's acquisition of MediaOne" [Source citation missing]
  • "FCC Approves AT&T's Acquisition of MediaOne" [No publication date cited]

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