"A deal is financially feasible (and) strategically interesting, but (it's) difficult to predict when or if it ever happens," said David Readerman, head of Internet research at Thomas Weisel Partners. "We're all trying to figure out how many degrees of freedom ExciteAtHome has to decide its future."
In its tersely worded statement, AT&T said: "We have periodically explored, and we continue to explore, many alternatives with respect to our Internet strategy and our ownership interest in ExciteAtHome." The company said alternatives include "internal options" as well as discussions with third parties.
Speculation that the key third party is America Online (AOL: news, msgs) fueled a sharp gain by ExciteAtHome on Wednesday. AT&T (T: news, msgs) didn't mention AOL in its statement, and AOL has declined to comment.
Shares of America Online added 3 13/16 to close at 107 7/8; AT&T slipped 1 15/16 to 41 9/16.