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minikin

Minikin's Journal

Routine Ramblings of an Occasionally Interesting Housewife


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Capitalism at its finest
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minikin
So, I have to admit to only really being interested in this issue because it appears to be affecting my email conversations with one very important friend. But damn, it is such an example of the worst of money as the all-mighty be all and end all.

It seems that AT&T owns a portion of Excite@Home and has offered to buy the remainder of the company for $307 million. Bondholders of Excite@Home say the offer is insufficient and believe they can force another cable company to pay more for the high-speed cable network. So they have asked a judge to shut down the service. Immediately. Arguments will be heard today; but a ruling may take weeks. Excite@Home has been in bankruptcy since Sept. 28.

What irritates me is that what is swiftly becoming a communications lifeline on par with telephone service is still treated by financial managers and the legal community as simply entertainment. If the "fewer than 20,000" customers in the Lexington area experience disruption of service during this time, the best they can hope to receive would be a refund or proration of their monthly bill. If that.

And what gets to me is the short-sightedness of this ploy by the bondholders. Hmm. Thinking about the probable thought processes of the typical @Home customer. "My internet service is disrupted - think I'll investigate other access asap. Stay with a company owned by people who care nothing for continuity of service? F*** that." Oh yes, this is sure to improve perceived value of Excite@Home. Right.

Not if the financial analysts at the potential buyers know anything about consumer services industries.

Sigh.

It's only entertainment.

That's for selling advertising, right?