Feeds

MS-friendly Comcast buys AT&T Cable

New colossus to dwarf AOL Time Warner

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Comcast will buy AT&T cable for $47 billion in stock and $25 billion in liabilities, creating a cable behemoth twice the size of AOL Time Warner, it was confirmed late Wednesday.

Cox Communications and AOL-TW had also entertained hopes during the months-long bidding competition, but fell shy of the mark. Good news for Microsoft, which backed Comcast in hopes of seeing a Redmond-friendly custodian of all that wire and fiber, which will reach 22 million US residences and businesses.

The joint custody arrangement has been worked out with AT&T's Michael Armstrong as Chairman of the new entity, and Comcast's Brian Roberts as its CEO.

Armstrong, we may recall, allowed himself to be mesmerized by the New Economy hype and was given to giddy bouts of optimistic techno-patois in which he predicted many great things for AT&T Cable, few of which ever materialized.

While Wall Street never quite approved of the IBM salesman turned corporate chairman, we reckon he's since learned that consumers can't, in fact, be forced to buy absolutely anything so long as it's marketed as 'technological'.

He promised too much and delivered too little, like any consummate salesman. And like any master of that particular art form, his biggest dupe was often himself. So he paid $110 billion for AT&T Cable, and is now selling it for just over $70.

The world didn't beat a path to AT&T's door, obviously because cable isn't a better mousetrap. It's good content and fast, cheap Internet access and well-maintained lines and competent customer service -- fundamentals where Comcast is at least good, and sometimes very good.

This could end up some comfort to AT&T's @Home customers who have been switched and subsequently frustrated by Ma Cable's inadequate customer support and technical assistance.

And as for Microsoft, it shares Armstrong's bizarre vision of shifting the locus of the Internet from the computer to the more comforting television, and has now got a giant provider with which it can do business. This too is unlikely to become a better mousetrap -- especially when consumers noodle out (or discover the hard way) what the near-future of digital rights management really means to their entertainment budgets -- but Hell, ya gotta dream. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
Ex-US Navy fighter pilot MIT prof: Drones beat humans - I should know
'Missy' Cummings on UAVs, smartcars and dying from boredom
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
The 'fun-nification' of computer education – good idea?
Compulsory code schools, luvvies love it, but what about Maths and Physics?
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
'Cowardly, venomous trolls' threatened with TWO-YEAR sentences for menacing posts
UK government: 'Taking a stand against a baying cyber-mob'
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.