Report: AOL makes bid for AT&T Broadband

AOL Time Warner Inc. has made an offer to merge the cable-TV division of AT&T Corp. with its own cable-TV operations, according to a report published Saturday. A merger between AOL's cable unit and AT&T Broadband would create the largest high-speed cable provider in the U.S. with 40 percent of the country's high-speed cable market.

AOL's proposal would merge AT&T Broadband Inc. with Time Warner Entertainment, an existing partnership between AOL and AT&T, said a report by the Wall Street Journal. The deal would give AT&T shareholders a 60 percent stake in the combined venture, it said.

AOL's Time Warner Cable unit has 12.7 million analog cable TV subscribers and, as of the end of 2000, 946,000 high-speed Internet customers, the company said. AT&T Broadband claims a cable subscriber base of over 14 million. As of June 30, the division had 848,000 telephony customers, 1.3 million high-speed data customers and 3.1 million digital cable TV customers.

AOL's reported bid for AT&T Broadband follows a bid by Comcast Corp., which had been in buyout talks for the broadband business. After Comcast's US$58 billion offer was rejected by AT&T's board in July, Comcast reportedly entered talks with AOL, Microsoft Corp. and The Walt Disney Co. in a continuing effort to acquire the broadband unit, according to a report published Tuesday.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about AOLAT&TAT&T BroadbandComcast CableMicrosoftTime WarnerWall StreetWalt Disney

Show Comments