Industry titans shake on $5 billion deal

 

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Microsoft, in a move to secure its spot in the broadband parade, takes a $5 billion stake in AT&T. The telecom giant, following its proposed acquisition of MediaOne, will be the largest cable operator in the nation. "Microsoft wants a seat in the new broadband environment, and they bought that seat." - Jim Balderston, Zona Research analyst

Microsoft: Money talks news analysis Microsoft has vast amounts of experience and resources to create clever software, but when it muscles into new markets a simple maxim applies: money talks. Windows CE faces technical issues news analysis Microsoft's decision to invest $5 billion in AT&T means Windows CE will cut a wider swath, but some question if the stripped-down operating system is up to the task. Microsoft, AT&T in $5 billion pact Microsoft invests $5 billion in AT&T and announces a series of agreements with the phone giant in a move to boost its position in broadband and Internet services. Previous coverage Microsoft sees cable in its software future Redmond reportedly may make a large investment in AT&T in a move to ensure its software and operating systems will be a critical component of cable set-top boxes. AT&T gives, but gains more news analysis The telecom giant has co-opted some of its most dangerous critics, convincing a growing number of the big cable firms that working together is better than standing in the way of Ma Bell. AT&T wins the bidding war for MediaOne update Comcast bails out of efforts to top AT&T's offer for MediaOne while concluding a side agreement with the telephone and cable giant. MediaOne-AT&T deal pushes Comcast aside update MediaOne's board of directors accepts AT&T's $62 billion buyout bid, while reports say AOL has backed out of partnering with Comcast for a counter bid. AT&T: The house that Armstrong rebuilt news analysis Just a year and half after taking the reins at AT&T, chief executive C. Michael Armstrong is wasting no time trying to reshape the once-lumbering phone giant into a broadband superpower that acts in Internet time.