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Berkshire Hathaway Inc. Message Board

  • rrb1981 rrb1981 Apr 13, 2002 12:47 PM Flag

    Any value in Ma Bell?

    I have been trying to decipher whether or not AT&T has any value. Despite it being debt laden, mismanaged, its recent declines in revenue and clients it still may have a bit of value in it(cigar butt anyone?). After AT&T Broadband is spun off to Comcast, the remaining "stub" will be the buiness and consumer long distnace. Comcast will be assuming 20 billion dollars of debt from AT&T which will drop Ma Bell's debt from around 54 billion to 34 billion. AT&T also has around 10 billion or so in cash and cash equivalents. The final mystery piece is the equity stake in Time Warner cable. I can't imagine that Comcast would be getting this with AT&T Broadband because AT&T-Comcast will be the biggest cable providor in the country and that would also give them a 25% stake in AOL which is number 2. So, is this equity stake in AOL accounted for under the cash and cash equivalents? If it isn't, is this another piece of unlocked value that AT&T can use to barter with? My thinking is that once Ma Bell pares off the cable unit and cleans up the balance sheet that they make a move for some bankrupt fiber networks(Williams Communication Group?) or they will get bought by a Baby Bell simply for the clients and the name(doesn't Buffett like companies with names that are very valuable..Coke, Gillete).

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    • I guess no one has an opinion on Ma Bell.

      >I have been trying to decipher whether or not >AT&T has any value. Despite it being debt >laden, mismanaged, its recent declines in >revenue and clients it still may have a bit >of value in it(cigar butt anyone?). After >AT&T Broadband is spun off to Comcast, the >remaining "stub" will be the buiness and >consumer long distnace. Comcast will be >assuming 20 billion dollars of debt from AT&T >which will drop Ma Bell's debt from around 54 >billion to 34 billion. AT&T also has around >10 billion or so in cash and cash >equivalents. The final mystery piece is the >equity stake in Time Warner cable. I can't >imagine that Comcast would be getting this >with AT&T Broadband because AT&T-Comcast will >be the biggest cable providor in the country >and that would also give them a 25% stake in >AOL which is number 2. So, is this equity >stake in AOL accounted for under the cash and >cash equivalents? If it isn't, is this >another piece of unlocked value that AT&T can >use to barter with? My thinking is that once >Ma Bell pares off the cable unit and cleans >up the balance sheet that they make a move >for some bankrupt fiber networks(Williams >Communication Group?) or they will get bought >by a Baby Bell simply for the clients and the >name(doesn't Buffett like companies with >names that are very valuable..Coke, Gillete).

 
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