Comcast Corporation's Merger With At & T Broadband

1108 Words Feb 18th, 2016 5 Pages
Case 3 – Comcast Corporation’s Merger with AT&T Broadband
Case Summary
The case study analysis the merger of Comcast and AT&T broadband and the factors that lead to it. The state of cable industry from 1996 is significant as the Telecom act opened new frontiers for wireless and cable companies which were now vying marketplace in both markets.
The study highlights AT&T’s efforts to become a leader in cable business. Their acquisitions and nationwide presence made it an ideal company for Comcast to merge with. The company in turn provided its capital to support during AT&T’s financially lean period. The company allows plans to sort out problems with AT&T’s low profits.
Ultimately the governance and post-integration strategies were a sign of concern as AT&T got major economic and voting power out of merger. The merged company had the challenging task of improving services by managing technology and finance and also establishing a new brand image.
Facts:
1) Comcast was found in 1963 under partnership of Ralph. J Roberts, Danial Aaron and Julian A. Brodsky in Mississippi.
2) 1969 company renamed as Comcast Corporation and in 1972 it was listed on NASDAQ stock market.
3) 1990 Brian Roberts became president of company.
4) 1995 invested in QVC, a home shopping television network.
5) Comcast had 8.5 million subscriber and $1 billion investment from Microsoft and several entertainment assets were included.
6) Comcast gained reputation as industry’s best operator.
1. Why does…
Open Document