Excite Chello deal dissolved

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Broadband provider Excite@Home Dec. 4 announced it had formally killed plans for Excite Chello, a joint company with European broadband company UPC and UnitedGlobalCom ("United Group"). The proposed merger would have merged Excite@Home's Asia-Pacific and European media and broadband subscriber businesses with assets and distribution commitments from United Group. United Group recently told Excite@Home that it wasn't willing to close the deal because of market conditions and asked Excite to weigh over alternative deals. Excite decided to end its relationship with the United Group, because "it was no longer in the best interests of its shareholders, customers, overseas joint venture partners and employees to pursue this transaction," the company said in a statement. "Among other concerns, Excite@Home believes that the complexity of the proposed Excite Chello venture, including the involvement of multiple shareholders with differing opinions and interests, would pose a risk to the swift execution of Excite@Home's international strategy and the continued rapid growth of its international broadband and media ventures."

Copyright December 2000, Crain Communications Inc.

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