Internet services provider Excite@Home has raised an additional $85 million by renegotiating its agreement with AT&T.
Excite – which also received $100m this month after a sale of convertible notes – is cancelling its contract to use AT&T’s capacity for twenty years. The internet company will now pay its partner $8.8m per year for the next 18.5 years, in return for the refund of $85m.
Excite – which has suffered from the dotcom downturn and recently axed its European operations [WAMN: 07-Jun-01] – predicted it would have $175m in cash at the close of Q2.
Separately, Excite also announced expectations of new agreements with cable operators Cox and Comcast within the next few weeks. The current exclusivity deals with the duo run out on December 4. No details on the companies’ future relationships have been disclosed.
News source: Advertising Age - Interactive Daily