In a stock swap and cash deal worth almost $3 billion, Atlanta-based Cox Communications Inc. announced today that it will acquire cable television systems serving approximately 495,000 customers in states in the South and West US.
In return for its 50.3 million shares of AT&T stock, Cox will receive:
Based on Tuesday's closing price of AT&T's stock, the transaction is valued at approximately $2.8 billion, or $4,230 per subscriber. The agreement has been approved by the boards of AT&T and Cox Communications, and will be subject to necessary government and regulatory approvals. Closing, which is expected by Q1 2000, is conditioned upon the ability of Cox and AT&T to qualify the transaction as a tax-free reorganization. The transaction is not connected to an agreement on the provision of local telephone service.
Following the close of pending cable system acquisitions, Cox will serve approximately 5.5 million customers nationwide, making it the nation's fifth largest cable company.