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AT&T mulls @Home
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September 30, 1999: 6:07 p.m. ET
Company considering alternatives regarding ownership in Internet firm
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NEW YORK (CNNfn) - Amid rumors that Excite@Home Corp. may split into two companies, AT&T Corp. said Thursday it is exploring "many alternatives" regarding its ownership interest in the firm.
The Los Angeles Times reported Thursday that Excite@Home, a cable-based Internet provider, is considering splitting the online service from the portal. Also, rumors that America Online Inc. (AOL) is considering acquiring the Excite portal sent Excite@Home (ATHM) shares soaring earlier this week.
In August, AT&T (T), which holds a 58-percent interest in Excite@Home, denied it was involved in any such proposal with AOL. After the market close Thursday, however, AT&T said in a statement that it continues to explore strategic alternatives regarding its ownership interest in Excite@Home.
"The alternatives include internal options as well as discussions with third parties," AT&T said. "The exploration of alternatives remains at the very preliminary stage, and at this time, AT&T has not made any decision to pursue any particular alternative or transaction."
The company's comments appear to be at odds with remarks made earlier Thursday by Thomas Jermoluk, Excite@Home chairman and chief executive officer.
At a technology conference in New York, Jermoluk said Excite@Home expects to continue a long-term relationship with AT&T.
"Michael Armstrong [AT&T's CEO] has been very public in saying that AT&T expects to fulfill its contract with us," Jermoluk said.
AT&T's contract includes the provision that grants Excite@Home exclusive Internet use of AT&T's cable systems. That contract expires in 2002.
@Home acquired Excite earlier this year in an all-stock deal then valued at $6.7 billion.
Excite@Home shares fell 2 to close at 41-7/16 before AT&T released its statement. Its stock rose to 43-1/2 in after hours trade.
AT&T shares finished unchanged at 43-1/2.
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