ExciteHome: Betting on a Broadband Revolution Harvard Case Solution & Analysis

In January 1999, @ Home, a high-speed Internet access provider, announced a $ 6.7 billion purchase of Excite, the second largest of the largest Internet "portals". This purchase marked the continuing consolidation of companies in the Internet "content" and "access" business, and raised new questions about the shape of future competitive success in the online arena. With the merger, the largest minority shareholder @ Home, AT & T, inherited contract with Excite, which guaranteed a content provider exclusive access to its pipelines cable until 2002. In the following months, many analysts wondered whether the treaty would hurt AT & T in the long run, and rumors of Excite @ Home collapse knocked the shares. Excite @ Home has denied the reports, but many analysts have suggested, such a deal would be a positive step for both @ Home and AT & T, which will no longer be tied to a single vendor offer content much faster speeds. "Hide
by Stephen P. Bradley, Matthew Sandoval Source: Harvard Business School 22 pages. Publication Date: December 17, 1999. Prod. #: 700069-PDF-ENG

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