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SBC bids for remaining Prodigy shares

SBC Communications announced Friday it is making a bid for all outstanding shares of Prodigy Communications. If successful, SBC would increase its stake from 42% to 100%, wholly owning and controlling the nationwide Internet service provider.

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SBC currently uses Prodigy as its content provider on much of its dial-up service and all of its broadband DSL offerings. If it owned Prodigy outright, SBC could easily expand to offer DSL and dial-up services beyond its 13-state local exchange area. SBC already has agreements with DSL wholesaler Covad to provide lines outside of its markets.

--Kevin Fitchard, staff writer

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© 2012 Penton Media Inc.

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