Excite Purchased By @Home

Excite was the latest of the search services to pick up a deep-pockets partner, with the announcement on January 19 that it would merge with @Home Network in a $6.7 billion stock swap.

@Home offers high-speed Internet access through cable television systems. It has affiliate partnerships with 18 cable companies worldwide, and AT&T is to become a major shareholder in the company when it completes its acquisition of Tele-Communications Inc.

With last year's partnership between Disney and Infoseek, and AOL having purchased Netscape, analysts have been expecting leading portals Excite, Lycos and Yahoo to seek out partners to assure their competitiveness and survival.

Now Excite has made its partnership, but ironically, perhaps it will assure @Home's survival more than vice-versa. Excite already reaches far more people than does @Home.

In fact, Excite's value is currently so high that AOL expects to net a half billion dollars from selling off most of the Excite shares it gained in stock-swap two years ago for the WebCrawler service.

@Home buys Excite in $6.7 billion deal
News.com, Jan. 19, 1999
http://www.news.com/News/Item/0,4,31065,00.html

AT&T nabs content for broadband bid
News.com, Jan. 19, 1999
http://news.com/News/Item/0,4,31129,00.html

How AT&T fits into the @Home/Excite deal.

Acquisition of Excite Has Rivals Thinking Broadband
Internet World, Feb. 1, 1999
http://www.iw.com/print/current/news/19990201-acquisition.html

Does Excite's partnership with a high-speed access provider mean that high-bandwidth multimedia portals are coming? It's being thought of.

Is Broadband Being Oversold?
Internet World, Feb. 1, 1999
http://www.iw.com/print/current/news/19990201-but.html

Cable Internet access has potential, but there have been bumps along the way.

@Home suffering cracks in the foundation?
News.com, Jan. 26, 1999
http://news.com/News/Item/0,4,31414,00.html

Similar to the article above.

America Online Cash Pile $2 Billion After Excite Sale
Reuters, Jan. 28, 1999
http://www.internetnews.com/Reuters/1999/01/2802-aol.html