AT&T, Comcast ready to dance together

AT&T and Comcast shareholders have approved the creation of AT&T Comcast via Comcast’s $53 billion purchase of cable TV unit AT&T Broadband. Comcast’s approval was a foregone conclusion because President Brian Roberts owns an overwhelming majority of the company’s voting stock. AT&T’s votes, however, had to be counted; 69% of outstanding shares favored the acquisition, and a separate issue says Roberts can only be fired by a 75% vote of the board until 2010.

Additionally, AT&T said that 89% of local franchise authorities have approved a change of control from AT&T Broadband to AT&T Comcast. AT&T Broadband operates cable systems in about 2400 local communities, about half of which have a requirement to approve a change of control under terms of their franchise agreements.

The only pieces left standing before AT&T Comcast becomes the world’s largest cable TV company are federal government approvals from the Securities & Exchange Commission and Federal Communications Commission. Both bodies are expected to OK the deal.

In other business, AT&T shareholders also approved the creation of a tracking stock for its consumer business when and if market conditions permit. AT&T said in March it would distribute the tracking stock in the second half of the year, but the proxy allows for the possibility of canceling the offer. Shareholders further approved a 1-for-5 reverse stock split that would reduce the company’s shares outstanding from 3.5 billion to 750 million.