Mediaone Group Inc

Microsoft Corp. said Tuesday it acquired a majority stake in Japan's second-biggest cable TV company in an effort to expand the markets for its software beyond the company's personal computer stronghold. The Redmond, Wash.-based software giant bought a 60% stake in Titus Communications that had been held by the MediaOne Group, a U.S. cable TV company that is being acquired by telecommunications giant AT&T Corp. Microsoft would not disclose financial terms.

AT&T Corp. completed its purchase of MediaOne Group Inc. for about $44 billion, becoming the largest U.S. cable television provider serving more than 40% of pay-TV customers. The acquisition was completed for about $23 billion in cash and 606 million shares worth $20.3 billion, based on AT&T's closing share price Wednesday, the company said. That's far lower than the $58-billion value when the deal was announced in April 1999.

AT&T Corp. said it would sell its interest in Time Warner Entertainment if it does not receive a favorable tax ruling to spin off Liberty Media Group to comply with conditions of its MediaOne Group Inc. purchase. AT&T told the Federal Communications Commission it probably would sell Liberty Media, but it was prepared to put TWE in a trust to comply with the conditions of its merger if it cannot complete the spinoff, according to a letter to the FCC made available Wednesday.

AT&T Corp. and MediaOne Group Inc., which have agreed to combine to form the largest U.S. cable television company, must open their systems to Internet service providers in Broward County, Fla., local officials ruled. The Broward Board of County Commissioners voted 4 to 3 Tuesday to require cable operators to give Internet companies access to their systems, becoming the second municipality in the U.S. to do so. MediaOne said it is studying its options, including a possible lawsuit.

Consumer groups are asking federal regulators to block AT&T Corp.'s bid to buy MediaOne Group Inc., saying the cable merger would give the company too much control in the markets for cable TV and high-speed cable Internet services. Consumers Union, Consumer Federation of America and the Media Access Project joined Tuesday in opposing the deal on grounds that it violates existing antitrust laws and federal rules that restrict the number of cable customers a single company can control.

MediaOne Group Inc., the cable-television company being acquired by AT&T Corp., is expected to approve a plan this week that will clear the way for AT&T to sell a stake in its wireless business to the public, people familiar with the companies said. MediaOne must approve any changes in AT&T's common shares prior to the close of their transaction. AT&T is considering selling 10% to 15% of its wireless business to raise about $7 billion, sources said, in what could be the largest-ever U.S.