- The Washington Times - Thursday, December 20, 2001

NEW YORK (AP) Comcast Corp. will merge with AT&T;'s cable-TV business in a deal valued at about $52 billion, the companies announced last night.
AT&T;'s selection of Comcast as a partner came five months after the New York-based telecommunications giant spurned a $41 billion unsolicited bid from Comcast, the nation's No. 3 cable operator.
Under the plan, AT&T; will spin off its cable division and merge it with Philadelphia-based Comcast. The deal includes AT&T;'s 25 percent stake in Time Warner Entertainment and the assumption of $20 billion in AT&T; debt.
The new company, to be named AT&T; Comcast Corp., will have about 22.3 million subscribers in 17 of the country's 20 largest metropolitan areas dwarfing its closest competitor, AOL's Time Warner Cable, which has 12.7 million subscribers.
"This is a leap forward in realizing a vision that thousands of AT&T; people have worked toward bringing greater choice in affordable broadband video, voice and data services to even more American homes," said Michael Armstrong, AT&T;'s chairman and chief executive, who will serve as chairman of the new company.
Under terms of the deal, AT&T; shareholders will receive about 0.34 shares of AT&T; Comcast Corp. for each share of AT&T; they own. Comcast shareholders will get one share of AT&T; Comcast Corp. for each Comcast share.
The combined company will have headquarters in Philadelphia while maintaining executive offices in New York. The deal is subject to regulatory approval, which observers have said is likely.
AT&T;'s chief financial officer, Chuck Noski, said a transition team would determine the fate of AT&T; Broadband's Denver-based headquarters and how many employees the new company will have. AT&T; Broadband has about 40,000 workers and Comcast has about 35,000. Comcast's president, Brian Roberts, will be the combined company's chief executive.

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