ExciteAtHome, the leading provider of high-speed Internet access over cable television lines, said Friday it will sell its broadband business to AT&T Corp. for $307 million in cash and filed for bankruptcy protection.
Under the agreement, the once high-flying company's network would become a part of AT&T, which already has a controlling interest in ExciteAtHome. The deal is subject to a bankruptcy judge's approval.
The bankruptcy papers, filed late Friday in San Francisco, will not result in any service disruptions to ExciteAtHome's 3.7 million subscribers, the companies said.
"This filing is a tool to protect the value of the broadband business for the benefit of the company's financial stakeholders and will help reassure our customers that service will continue uninterrupted through the restructuring process," said Patti Hart, ExciteAtHome's chief executive.
The directors of both AT&T and ExciteAtHome approved the asset-purchase agreement. The deal, however, could be canceled if higher and better offers are received.