Exhibit 99.1
MEDIAONE GROUP AND AT&T SIGN DEFINITIVE MERGER AGREEMENT
FOR IMMEDIATE RELEASE THURSDAY, MAY 6, 1999
ENGLEWOOD, Colo., AND NEW YORK-- MediaOne Group and AT&T have entered into
a definitive merger agreement under which MediaOne Group's shareowners will
receive .95 of a share of AT&T common stock and at least $30.85 in cash for each
share of MediaOne Group stock they own, the companies said today.
The action came after MediaOne Group's board of directors voted to
terminate the company's earlier agreement with Comcast, which Tuesday said it
would not try to outbid AT&T's offer. As part of the termination agreement,
Comcast today received the agreed-upon break-up fee of $1.5 billion.
"This is an excellent agreement for consumers, who will be able to take
full advantage of packaged services on broadband networks," said Xxxxx Xxxxxx,
MediaOne Group chairman and chief executive officer. "Our shareowners are
getting great value for their investments, and more of the nation will get a
great competitive brand in the local phone market."
"Obviously, we're delighted," said X. Xxxxxxx Xxxxxxxxx, chairman and chief
executive officer of AT&T. "We look forward to completing the merger as soon as
possible, probably in the first quarter of 2000, so millions of consumers will
have more choice in phone and Internet access services."
MediaOne Group (NYSE: UMG, xxx.xxxxxxxxxxxxx.xxx) is one of the world's
largest broadband communications companies, bringing the power of broadband and
the Internet to customers in the United States, Europe and Asia. The company
also has interests in some of the fastest-growing wireless communications
businesses outside the U.S. For 1998, the businesses that comprise MediaOne
Group produced $7.1 billion in proportionate revenue.
AT&T (NYSE: T, xxx.xxx.xxx) is the world's premier provider of voice and
data communications, with more than 80 million customers, including businesses,
government and consumers. AT&T runs the world's largest, most powerful
long-distance network and the largest wireless network in North America. The
company is a leading supplier of data and Internet services for businesses and
the nation's largest direct Internet service provider to consumers. AT&T also
provides local telephone service to a growing number of businesses.
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