Battle for Carrier Supremacy Heats Up
The telecom company saw its own takeover attractiveness grow when Microsoft Corp. backed rival bidders to AOL Time Warner Inc.At the same time AT&T Broadband snubbed its nose at Excite@Homes negotiating tactics and left the bankrupt Internet service provider high and dry last week, the telecom company saw its own takeover attractiveness grow when Microsoft Corp. backed rival bidders to AOL Time Warner Inc. Microsofts backing of Comcast Corp. and Cox Communications Inc. in the bid for AT&T Broadband, of Basking Ridge, N.J., illustrates the value of the network to content providers. The future of broadband access to tens of millions of households across the country pegs them squarely against each other.
"If AOL Time Warner purchased AT&T Broadband, that would make access to those 15 million subscribers that much more difficult for Microsoft," said Mike Paxton, an analyst at Cahners In-Stat Group, in Scottsdale, Ariz. "Thats a chance they dont want to take. Its in their interest to have AT&T do anything but become part of AOL."