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This is an archive article published on March 23, 1999
US cable groups merge to create 97 bn giant
LONDON, Mar 22: US cable giants Comcast and MediaOne Group announced a 60-billion merger on Monday to create the world's largest broad-b...
LONDON, Mar 22: US cable giants Comcast and MediaOne Group announced a 60-billion merger on Monday to create the world8217;s largest broad-band communications group. Comcast, which controls the home shopping channel QVC, and MediaOne are the third- and fourth-largest domestic cable providers and together serve 11 million customers in 18 million homes.
Comcast/MediaOne will have a combined capitalisation of 97 billion and focus on the video, voice and data markets. quot;The new company will have the size and scope to lead the evolving broad-band environment,quot; Comcast president Brian Roberts said.
MediaOne UMG shareholders will control around 64 per cent of the merged entity after the all-stock deal, receiving 1.1 Comcast CMCSK shares or 80.16 for each MediaOne share. The deal represents a 32 per cent premium on MediaOne8217;s 60.75 closing price on March 19. Its stock has surged 50 per cent since January.
Comcast president Ralph Roberts will become chairman of Comcast/MediaOne while Brian Roberts is tobecome president of the new entity. MediaOne chairman Charles Lillis will be vice-chairman of the group. Comcast has focused on its core cable business after selling its cellular phone business to SBC Communications SBC in January. MediaOne has been seeking a media partner after being spun off by telecom operator US West at the end of last year.
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