AT&T To Pull Excite@Home Buyout Offer
from the good-move dept
Not surprisingly, AT&T is likely to take it’s $307 million buyout offer of Excite@Home off the table. As they’ve now switched most of their cable modem subscribers to their new service in what (so far) has been a surprisingly smooth process, they have no need for Excite@Home any more. In fact, I stand by my assertion that AT&T should do the move out of spite for the Excite@Home creditors who demanded more money and forced the network shutdown this past weekend. The creditors were under the mistaken impression that they could just set the value of Excite@Home’s assets – when the reality is that the market sets the price. In this case the market was AT&T. If there was another bidder, then the creditors would have a point – but there wasn’t. So, now the creditors will still end up with next to nothing for their silly investment – and they succeeded in needlessly angering about a million cable modem subscribers. Update: It’s official. AT&T isn’t buying Excite@Home any more.