AT&T and Tele-Communications announced yesterday the completion of their merger in a stock transaction believed to be worth about $US55 billion.
As the new AT&T Broadband & Internet Services, TCI will be responsible for the company's cable ventures as well as its ownership interest in the @Home Corp. The new business unit will continue to be headquartered in Denver, Colorado, where TCI is based, and will be headed by chief executive officer Leo Hindery, formerly president of TCI.
The merger was initially worth about $48 billion when it was announced last June, but appreciation of stock has increased its value, according to AT&T.
AT&T plans to deliver integrated telephony, entertainment and high-speed Internet-access services over cable to its existing customers and TCI's nearly 11 million customers, a company statement said.
AT&T reiterated plans to pilot telephone service over broadband cable in 10 US cities by the end of this year.
John Malone, chairman of Liberty Media Group and former chairman and CEO of TCI, is expected to be elected to the AT&T board of directors at AT&T's regular board meeting this month, the company said.
In 1998, TCI Group had revenues of about $6 billion. The company has 32,000 employees and about 191,600 shareowners.
AT&T had 1998 revenues of $53.2 billion and assets of $59.5 billion. It has about 3.2 million shareowners and about 107,800 employees.