AT&T fancies a bit of Excite@Home

AT&T is considering buying some of the assets of Excite@Home, the flagging access and content provider.

AT&T is thought to be interested in acquiring the elements of Excite@Home that provide broadband access for cable companies.

On Tuesday it emerged that the troubled internet company was cutting 500 jobs in a bid to stay afloat. This increased industry speculation that the company was heading for bankruptcy.

According to reports on Reuters news service, if the company files for bankruptcy protection AT&T will contemplate a bid.

As the USA's largest cable provider, AT&T already has nearly a quarter equity stake in Excite@Home. It would be compelled to buy up the broadband assets of Excite to ensure the provision of services to its cable customers is not interrupted.

However, an unnamed source added that AT&T would make the acquisition only if the price was right.

Reports in yesterday's Wall Street Journal suggested that the AT&T board had discussed a figure of between $250m and $300m.

Excite@Home has been staggering under the weight of a $1bn debt but has made no announcement about filing for Chapter 11 protection. However, it is expected to file some time within the next two weeks.