Cable modem cos. join up?
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February 9, 1998: 6:44 a.m. ET
Road Runner, @Home discuss strategic combination, reports say
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NEW YORK (CNNfn) - @Home Corp. is reportedly in talks with Time Warner Inc.'s Road Runner unit about a possible combination of the two cable-internet service providers.
Negotiations have yet to reach the serious stages and no deal is imminent, according to published reports on Monday. The talks were first reported last week in the industry trade magazine, Broadcasting & Cable.
The combination could result in a partnership interconnecting their networks rather than an outright merger because of the complexity with the companies' ownership structures. @Home is owned predominantly by Tele-Communications Inc., with minority shares controlled by Comcast Corp. and Cox Communications Inc. Road Runner, meanwhile, is in the midst of merging with MediaOne Express, the cable Internet business of U.S. West Media Group.
The shifting alliances underscore how cable companies are scrambling to strengthen their positions as other high-speed alternatives from telephone companies race to market. Cable Internet connections allow a PC to access and deliver information as much as 26 times faster than conventional telephone connections.
Cable companies have already begun test marketing set-top box technology in various markets as an alternative to PC connections.
Road Runner officials declined to comment on Monday's reports. An @Home spokesperson confirmed that the companies was talking but declined to specify.
Time Warner is also the parent company of CNN.
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