Comcast Kicks Off Liquidity Program


Comcast Corp. has launched its previously announced stock-option-liquidity program, which offers certain nonemployee holders of employee stock options an opportunity to receive value for their options.

The MSO said the eligible nonemployee universe consists of approximately 63,000 holders of roughly 41.8 million options in the aggregate, with a current value of about $125 million.

When Comcast acquired AT&T Broadband in November 2002, former holders of AT&T Corp. employee stock options had their options converted in whole or in part into options on Comcast class-A common stock, the MSO said.

Many of these option holders -- together with a small number of holders of options on Comcast class-A special common stock -- have no ongoing employee affiliation with Comcast. Therefore, the traditional purpose of employee stock options -- to align the interests of the employer with the employee -- no longer applies to the options held by those individuals, Comcast said.

The MSO said that although eligible option holders will be able to receive cash for their options, it will incur no economic dilution from this offering, as JPMorgan Chase Bank -- Comcast's financial counterparty in connection with the stock-option-liquidity program -- will ultimately fund the cost of providing the program.

The offering expires Nov. 9.