Comcast Corporation's Merger with At&T Broadband

Abstract

In December 2001, after a six-month process of vying for AT&T's Broadband, the president of cable operator Comcast Corporation, had just received word that Comcast's $72-billion offer had won the auction. Comcast, the cable industry's third-largest operator, would merge with industry leader AT&T Broadband to form a company with more than $20 billion in revenue and an unparalleled distribution (a presence in 22 of the nation's top 25 markets). Now the presidents of both companies began to consider their post-merger integration strategies. What was important and how should they prioritize their activities? How could they get all stakeholders to understand the rationale for the deal and its business goals and excited about the new AT&T Comcast?

Excerpt

UVA-BP-0480

Comcast Corporation's Merger with AT&T Broadband

We will be the company to look to first for the communications products and services that connect people to what's important in their lives.

—Comcast credo

Introduction

In December 2001, Brian Roberts, president of cable operator Comcast Corporation, walked out of the New York offices of AT&T's law firm, Wachtell Lipton, wondering what to do next. After a six-month process of vying for the nation's largest cable operator, AT&T Broadband, Roberts had just received word that Comcast's $ 72 billion offer had won the auction. Comcast, the cable industry's third largest operator, would merge with industry leader AT&T Broadband to form a company with more than $ 20 billion in revenue and unparalleled distribution with a presence in 22 of the nation's top 25 markets (see Exhibit 1 for combined presence).

. . .

Keywords: Strategy, mergers and acquistions, post-merger integration, industry consolidation