- Title: USA: AT&T MERGES WITH THE CABLE TELEVISION GIANT TELE-COMMUNICATIONS INC
- Date: 24th June 1998
- Summary: NEW YORK, NEW YORK, UNITED STATES (JUNE 24, 1998) (AT&T VNR) 1. SV VARIOUS HANDSHAKES BETWEEN CEO'S MICHAEL ARMSTRONG OF AT&T AND JOHN MALONE OF TCI ( SHOTS) 0.22 2. SV MIKE ARMSTRONG TALKING ABOUT MERGER "TODAY, JOHN MALONE AND I ARE DELIGHTED TO ANNOUNCE THE NEXT STEP (CUTAWAY JOHN MALONE) THAT'S OF COURSE THE MERGER OF AT&T AND TCI. WHAT ARE WE DOING? WE'RE JUST COMBINING THE VERY BEST BRAND IN THE COMMUNICATIONS INDUSTRY WITH THE BEST BROAD BAND REACH IN THE CABLE INDUSTRY" (ENGLISH) 0.43 (FILE) (NBC - NO ACCESS USA/CNN) 3. SV EXTERIORS AT&T HEADQUARTERS (2 SHOTS) 0.50 (JUNE 24, 1998) (AT&T VNR) 4. SV MALONE SAYING, "WE KNOW THAT IT HAD SOME WEAKNESSES - BUT WE ALSO KNEW IT HAD WONDERFUL STRENGTHS. THE REALITY OF IT FOR US IS THAT WE'VE BEEN VERY AMBITIOUS - WE'VE ALWAYS HAD A VISION. WE'VE HAD A VISION OF AN ADVANCED COMMUNICATIONS PLATFORM BASED UPON COAXICAL CABLE INITIALLY ENHANCED BY OPTICAL FIBRE TRANSPORTING THE NEW DIGITAL AGE OF SERVICES INTO HOMES AROUND THE WORLD" (ENGLISH) (2 SHOTS) 1.27 (FILE) (NBC - NO ACCESS USA/CNN) 5. SV EXTERIORS OF TCI HEADQUARTERS (2 SHOTS) 1.35 (JUNE 24, 1998) (NYSE TV - ACCESS ALL) 6. SLV OPENING BELL AT THE NEW YORK STOCK EXCHANGE 1.44 (JUNE 24, 1998) (RTV - ACCESS ALL) 7. SCU THOMAS AUST, TELECOMMUNICATIONS ANALYST WITH CITICORP SAYING, "THEY SEE A TREMENDOUS GROWTH IN TERMS OF THEIR ABILITY TO PUT A WHOLE NEW SLEW OF SERVICES INTO COMUSMERS HOMES. THEY ALSO WILL BE DIVIDING THE BUSINESS IN TWO. A WHOLESALE SIDE AS WELL AS A CONSUMER SIDE." (ENGLISH) 2.06 (FILE) (NBC - NO ACCESS USA/CNN) 8. SCU BANK OF MONITORS IN CABLE HQ (2 SHOTS) 2.16 Initials Script is copyright Reuters Limited. All rights reserved
- Embargoed: 8th July 1998 13:00
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- Location: NEW YORK, NEW YORK, UNITED STATES
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- Country: USA
- Reuters ID: LVA3WCH3PWSYJDVAJ13M6U6P6G3U
- Story Text:American company AT&T has merged with the cable television giant Tele-Communications Inc.(TCI) in a stock swap worth 48 billion U.S.dollars.
AT&T's strategy for getting back into local phone service includes combining its long distance, wireless and Internet services with TCI's cable, telecommunications and high-speed Internet businesses into a single company.
The company, to be called AT&T Consumer Services, will have its own "tracking" stock, whose price will be directly tied to its results.
The deal, announced on Wednesday (June 24) means Leo Hindery, TCI's president and day-to-day, hands-on manager, will head up AT&T Consumer Services as its president and chief operating officer.AT&T's No.2 executive, John Zeglis, will be chairman and chief executive officer of the new company.
AT&T forecast that AT&T Consumer Services would have revenues of more than $33 billion in 1999, and earnings before interest, taxes, depreciation and amortization of $7 billion to $7.5 billion.
AT&T and TCI said they expect their merger to result in increased revenues and lower costs, producing savings of $2 billion annually three years after the deal closes. - Copyright Holder: REUTERS - SOURCE TO BE VERIFIED
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