It's AMAZING that @home has gone bankrupt.. This is ONLY a short term problem.. long run they are EXTREMELY profitable, and thats only using the $8 per subscriber fees they are getting now! (Think about what a company-owned solution, like Charter Pipeline, could bring in, where the full $40 goes to the company?) Look at the numbers (from quote.yahoo.com):
Operating Costs
(3 mo)$480,000 (9 mo)$1,880,000
Thats about $2.5 MILLION A YEAR IN OPERATING COSTS! They have over 4,000,000 subscribers, with 9,000 more signing up each week! The new customers ALONE will pay for operating costs for ALL users! They are raking in $32 million per month or $384 million a year! And to think that is about what AT&T is offering to BUY them for!? WHAT A STEAL!! As soon as all the debt is paid off profits will just flow in to whoever owns this! And if AT&T has its way, it won't even have to pay for the initial cost of BUILDING the network! It will just screw the bondholders out through this "bankruptcy" trick and get them to pay for it!
It's AMAZING this company ever got close to bankruptcy. True, they lost money last year, but that's because the president and his cronies decided to make the stupid mistake of making Excite@home all this other stuff *BESIDES* being a broadband company (Greeting cards, content, etc.) They just sold all this stuff and should be profitable in a year or so, if you look at the numbers. The thing I don't understand is this: The judge allowed @home to terminate the contracts "in order to provide better negotiating for @home" First of all, if @home turns off the tap on broadband for a cable company's customers, that will be completely intolerable and the cable firms will start to build their own network, leaving @home's future as NILCH. Second, many cable firms already have alternate means in case @home dies (see what Charter and AT&T did) and so when @home shut off, they completely LEFT @home, so they no longer get any money from this huge customer base! How is THAT supposed to make @home's bondholders more money?! It all makes NO SENSE. Unless you believe AT&T engineered the thing to get an awesome broadband network for pennies on the dollar. That's the only thing this finance major can come up with...