AT&T Subsidiary Liberty Media Buys Wireless Company
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AT&T's cable television subsidiary Liberty Media Group Tuesday announced the acquisition of wireless communications firm The Associated Group, Inc. in an all-stock transaction valued at approximately $3 billion.
The transaction is subject to approval from Associated's stockholders and from various governmental authorities, including the Federal Communications Commission (FCC) and state regulatory agencies. With approval, the transaction is expected to be completed in early 2000, the companies said.
The acquisition was made to bulk up Liberty's interests in Internet infrastructure. Associated has a controlling interest in Teligent LLC, a provider of broadband wireless competitive local exchange carrier networks for voice, high-speed data, Internet access and video conferencing facilities and services. It will be integrated into Liberty's holdings.
Other assets include TruePosition, Inc., a wholly-owned wireless subsidiary, an interest in a Mexican cellular telephone company, ownership of radio broadcasting properties and a portfolio of marketable equity securities.
"The Associated transaction is a unique opportunity for Liberty," said Robert Bennett, president and CEO of Liberty. "It allows us to obtain an attractive investment in the very exciting and rapidly growing business of Teligent. In addition, Associated has been a pioneer in the development and commercialization of wireless location systems."