Internet-over-cable company @Home Network Inc is rumored to be on the verge of winning AT&T Corp as a major investor, to the tune of $1.25bn, if a report in yesterday’s USA Today turns out to be accurate. @Home was said to be soliciting approval for the deal from its major backers, which are all cable companies, at the cable industry’s annual get together, the Western show in Anaheim, California. The negotiations were said to have been led by 45% shareholder Tele-Communications Inc (TCI) and is said to be in the final stages. @Home wouldn’t comment on the story. @Home currently has 188.5 million shares outstanding and they closed yesterday up $2.625 at $25.875, so @Home would probably issue new shares as part of the deal at least otherwise AT&T would be left with a huge chunk of the company. The paper reported that such as deal would bring @Home together with WorldGate Communications, a start-up company that is preparing a system to deliver internet content through regular cable set- top boxes. However that looks like a typo and the paper probably meant WorldNet, AT&T’s internet service. As @Home’s Matt Wolfrom pointed out from the show, WorldGate was itself going round the show touting for investors to add to Motorola Inc, Citicorp and Needham & Co.
