Oct, 2001 : AT&T Offers to Purchase Excite@Home Broadband

📅 October 1, 2001 - AT&T has confirmed that it has signed a definitive agreement to purchase essentially all of Excite@Home's broadband access business assets for $307 million in cash. Separately, Excite@Home announced it has commenced a Chapter 11 case in the United States Bankruptcy Court, for the Northern District of California (San Francisco).

AT&T says it remains committed to working with Excite@Home's management andthe bankruptcy court to provide uninterrupted high-speed cable Internetservice to existing Excite@Home customers, as well as continuingrelationships with other cable companies to ensure seamless service to theircustomers on the @Home network. However, the asset purchase agreementremains subject to higher and better offers. If the asset sale is approved,the company also said it plans to build on the assets it acquires to developa more robust network while improving and growing its broadband high-speedInternet access business for all cable company subscribers.
The boards of directors of both AT&T and Excite@Home have approved theasset-purchase agreement, which will be filed with the bankruptcy court andthe Securities & Exchange Commission. The transaction is subject tobankruptcy court approval and certain other conditions. Subject to suchapproval, the companies hope to close the transaction by early next year.
AT&T said that debtor-in-possession financing was unnecessary, asExcite@Home believes it has sufficient funds to continue operationsthroughout the period prior to closing.