According to published reports, AT&T may sell WorldNet, its ISP division, to @Home.
But it seems the deal will only go through if AT&T's pending acquisition of Tele-Communications, Inc. (TCI) is approved by the Federal Communications Commission. And even then, it wouldn't really be selling WorldNet off in the traditional sense because TCI is @Home's majority share holder.
@Home would pay $1 billion in stock for AT&T's WorldNet Internet service, which includes 1.3 million residential customers and about 1 million business customers, according to reports. AT&T would continue operating the network underlying the WorldNet service.
AT&T would not comment on this report.
If executed, the sell-off would leave AT&T with a good deal of control over WorldNet because TCI holds a controlling stake in @Home. If AT&T completes its buyout of TCI, the carrier will assume TCI's 58% stake in @Home's voting stock.
Guth is with IDG News Service's Tokyo Bureau.
RELATED LINKS
@Home buys Excite for $6.7 billion
IDG News Service, 1/19/99.
The building of AT&T WorldNet
Network World, 2/9/98.
