ChatGPT's New Skills Resident Evil 4 Remake Galaxy A54 5G Hands-On TikTok CEO Testifies Huawei's New Folding Phone How to Use Google's AI Chatbot Airlines and Family Seating Weigh Yourself Accurately
Want CNET to notify you of price drops and the latest stories?
No, thank you

@Home stock soars on new deal

The cable modem service's stock hits a record high after an alliance with Cablevision to deliver high-speed Net access to the Northeast.

@Home's (ATHM) stock hit a record high today after the company announced an alliance yesterday with Cablevision Systems to deliver high-speed Internet access to Northeastern markets.

The company's stock closed at 26-5/8, up 4-1/4. As previously reported, @Home's deal with Cablevision, the nation's sixth-largest cable TV operator, gives it access to an additional 5.5 million homes in cities such as Boston, Cleveland, and New York.

As part of the deal, Cablevision receives a warrant to buy 11 million shares of @Home's stock at 50 cents per share, equal to an 8 percent stake if exercised today. In return, Cablevision will make its cable systems available to @Home on an exclusive basis. Cablevision joins Tele-Communications Incorporated (with a 39.5 percent stake), Comcast (12.4 percent), and Cox Communications (12.4 percent) as @Home cable partners. Venture capital firm Kleiner Perkins Caufield & Byers also holds a 11.3 percent stake.

The deal with Cablevision--whose stock rose 4-5/16 today to close at 68-1/4--clears the way for @Home to reach more than 50 million homes in North America.

Cablevision already is installing a hybrid fiber-coaxial architecture to its cable TV network; sixty percent of its cable plant now is upgraded. With the @Home alliance, Cablevision's so-called "Optimum Online" service will utilize @Home's network infrastructure and broadband content.

"By joining forces with Cablevision, @Home gains access to a significant concentration of homes in key major metropolitan markets in the Northeast corridor, enhancing our potential service footprint," said @Home chief executive Tom Jermoluk.